PERTH (miningweekly.com) – Gold explorer Tietto Minerals will raise A$62.5-million through a share placement and share purchase plan (SPP) to fund exploration work and feasibility studies at the Abujar gold project, in Cote d’Ivoire.

The ASX-listed company on Monday said that it had received firm commitments for the placement of 92.7-million shares, at a price of 62c each, to institutional and sophisticated investors, to raise an initial A$57.5-million.

The placement will occur in two tranches, with the first consisting of 35.2-million shares, to raise A$21.8-million under the company’s existing placement capacity. A second tranche of more than 55.9-million shares, to raise a further A$34.6-million, will be subject to shareholder approval at a meeting scheduled for September.

Tietto nonexecutive director Hanjing Xu has agreed to subscribe for A$730 000 worth of shares, while chairperson Francis Harper will subscribe for A$270 000 at the same time, subject to shareholder approval.

In addition to the share placement, Tietto will also undertake an SPP of up to an additional A$5-million, allowing existing shareholders to subscribe for up to A$30 000 in new shares, at the same price as the placement.

“This placement means Tietto is now fully funded to deliver its prefeasibility study and definitive feasibility study next year, and have great flexibility to commit to some long-lead time items related to mine development,” said MD Dr Craigen Wang.

“This is an enviable position given Tietto only listed on the ASX in 2018,” he added.

The funding from the placement will also allow Tietto to undertake further resource drilling at the 2.2-million-ounce Abujar project over the next 12 months, with the company targeting 45 000 m, as well as exploration drilling of 25 000 m across multiple targets outside of the existing resource.

An updated mineral resource is planned for September this year.