• Theta Gold Mines secured firm commitments from investors for $33.9 million to fund construction at its TGME gold project.

• The financing combines equity placements and a $10 million loan from private investors, adding to an existing $35 million IDC credit facility.

• TGME is designed to produce 1.24 million ounces of gold over 12.9 years, with updated feasibility studies underway as gold trades above $3,900 an ounce.

Theta Gold Mines said on October 7 that it secured firm investor commitments to raise a total of $33.9 million for its TGME gold project in South Africa. The Australian junior miner said the financing combines equity and debt and will support construction works at the site.

The company outlined a $7.9 million institutional placement scheduled for October 14, alongside a two-tranche $15 million share issuance backed by private investors Cong Yu Company Ltd and Moonx Intelligence Ltd. These same investors also agreed to provide a loan of about $10 million. In addition, non-executive director Brett Tang will support a $1 million share issue.

Theta noted that some of these transactions, particularly the private placements, remain subject to shareholder approval. Once secured, the funds will finance civil works at the TGME plant and the development of production infrastructure.

The new financing complements a $35 million credit facility arranged with the state-owned Industrial Development Corporation.

Theta aims to build a mine at TGME capable of producing 1.24 million ounces of gold over 12.9 years. A 2022 feasibility study estimated an initial investment of $77 million. The company is now updating the study to reflect current gold prices.

Gold traded at more than $3,900 an ounce on October 7, up 137% from the $1,642 an ounce price reference used in the 2022 study. Analysts expect the metal to cross the $4,000 threshold by 2026.

Theta’s TGME project is one of several new mines advancing in South Africa. West Wits Mining is also developing the Qala Shallows project, which targets average annual output of 70,000 ounces. The company announced a $12.5 million investment in late September to accelerate construction.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange Jason Quenum