Theta Gold Mines Limited (ASX: TGM), a gold development company with assets in South Africa, has announced it secured additional funding of US$6 million (~A$9.3 million) before costs. This funding will advance the construction of its TGME Gold Project in South Africa. The investment comes via a third tranche from additional Cornerstone Investors on the same terms as previously announced. The new cornerstone investors are Hongkong Ruihua Investment Management Limited and Jingsha Diao.
Theta Gold will issue approximately 59,783,286 fully paid ordinary shares at A$0.155 per share and grant one free attaching option for every 2.38 shares subscribed, subject to shareholder approval. The Tranche Three Shares will be subject to a voluntary 24-month escrow period from the date of issue. Funds raised will be used for construction, infrastructure, plant equipment, and to strengthen the company’s balance sheet.
The company also announced the conversion of its 2023 convertible loans. Lenders have agreed, subject to shareholder approval, to convert outstanding principal and interest of approximately A$7.8 million into 44,029,574 shares in exchange for 10,000,000 unlisted options. The conversion strengthens the company’s balance sheet and allows it to progress with debt syndication.
The company will extend the dates for its Share Purchase Plan (SPP), allowing retail shareholders to participate in an offer to raise up to US$1.3 million (~A$2 million). Shareholder approval for the Tranche Three shares, options, and convertible loan conversion will be sought at the upcoming AGM on 28 November 2025.
