- Taruga Minerals (TAR) raises up to $2 million through an “oversubscribed” equity placement to help fund exploration activities at its Mt Craig copper project in South Australia
- The company announces that it will issue approximately 58.8 million new shares at a price of 3.4 cents each.
- The issue price represents a 12.8% discount to the five-day volume-weighted average price before the stock ceased trading.
- A share purchase plan (SPP) is also planned to raise up to an additional $500,000 for a final global fundraising of up to $2.5 million.
- TAR shares down 10.3% to 3.5 cents
Taruga Minerals (TAR) has shaken tin up to $2 million through an ‘oversubscribed’ share placement to help fund the next phases of exploration planned at its Mt Craig copper project in South Australia .
The company said it has received firm commitments from new and existing sophisticated and institutional investors.
It intends to issue approximately 58.8 million new shares at a price of 3.4 cents each. The issue price represents a 12.8% discount to the five-day volume-weighted average price before the stock ceased trading.
A stock purchase plan (SAP) is also planned to allow eligible shareholders to subscribe to batches of shares with a maximum value of $30,000, offered at the same issue price as the placement.
The PSP aims to raise up to an additional $500,000, taking the latest fundraising totaling up to $2.5 million.
Taruga said funds from the capital raises will be used for a number of exploration activities, including reverse circulation and diamond drilling on the Morgan’s Creek and Wyacca prospects and preliminary metallurgical testwork on rare earth elements.
CEO Thomas Line said the placement received overwhelming support.
“The fundraising saw new institutional investors join the register, as well as strong participation from Taruga directors and existing major shareholders,” he said.
“We are also delighted to offer our valued retail investors the opportunity to participate in raising capital, through the SPP offering.
“The funds raised through the placement and the SPP will ensure that the company remains well funded as we implement the next phases of our exploration program on the Mt Craig copper project.”
TAR shares ended the day’s trading session down 10.3% today at 3.5 cents.