TNT raises for Mt Ida

JUST days after announcing its move on Ora Banda Mining’s non-core Mt Ida project, TNT Mines has completed an oversubscribed raising via the issue of convertible loans.
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Haydn Black


The A$15 million raising was supported by domestic and overseas institutional investors, and easily exceeded the $11 million purchase price and minimum $12 million required by the sale agreement.
The loans can be converted into shares within three years at 15c. 
Canaccord Genuity acted as lead manager, supported by Sprott Capital Partners and Chieftain Securities. 
TNT and Ora Banda are now working to finalise the acquisition, which will transfer ownership of the of leases, located about 100km north-west of Menzies in Western Australia's Eastern Goldfields, and see the first serious exploration push at Mt Ida for the first time in more than a decade.
The leases have historical gold production of some 300,000 ounces gold at a head grade of 17.2 grams per tonne, mainly from the Timoni mine, plus unrecorded copper production.
TNT chairman Alex Hewlett said the Mt Ida mineral field had advanced gold, copper, nickel, and lithium targets.
As soon as the tenements are transferred the company wants to get drilling.
It has a rig at Reids Ridge, within its Warriedar project, it hopes to mobilise to Mt Ida in October.
While the exact program is still being finalised, the early focus could be on extending the 60,000oz inferred resources associated with the Meteor-Whinnen lodes, defining resources at the Bombay and Kestral prospects, and examining the copper potential of the area.
TNT speculates there is oxide potential associated with the Dave hanging wall lode, a potential repeat of Timoni, that has not been modelled. 
The oxide could offer near-term production while allowing the wider project to be unlocked, such as the potential to replicate the Timoni and Baldock Whinnen lodes at depth and along strike.
Baldock has indicated resources of 81,000oz.
Drilling in the project area averages less than 75m, however deposits such as Darlot, Bellevue and Paulsens can extend more than 1km below the surface.
Within two years TNT wants to be thinking about mining options, potentially with a processing facility it can integrate with its 112,000oz Eureka project, 50km from Kalgoorlie.
TNT shares jumped 30% in early trade to 23c, valuing it at $20 million.
The stock has traded between 14.5-36c over the past year.