Terrain Minerals (ASX:TMX) is undertaking a capital raising initiative aiming to secure up to $2.535 million to fund expanded drilling operations at its Smokebush Gold Project in Western Australia. The project will focus on the Wildflower, Lighting, and Monza targets. A placement to sophisticated investors has already generated $735,000 toward this goal. Further funding will support exploration at other projects, including the Biloela Copper and Gold Project, recently extended for two years.
Two Terrain Minerals directors have committed to underwriting $116,000 of any shortfall from a rights issue, and other board members have pledged a combined $116,000, with $231,000 expected to be raised through the rights issue. The company, currently valued at $4.49 million, will issue new shares at $0.003 each for every 3.7 shares held. Each new share includes a free option, exercisable at $0.005 until June 17, 2027. This move aligns with broader positive trends in Australian gold production, projected to reach 377 tonnes annually by 2029-30, up from 289 tonnes in 2023-24.
