Tietto Minerals’ $85m placement completes funding for Abujar gold project

West African gold explorer Tietto Minerals (ASX: TIE) has received binding commitments for a two-tranche share placement to raise $85 million to conclude financing of its flagship Abujar project in Cote d’Ivoire through to gold production.

The placement, comprising the issue of approximately 218 million fully paid ordinary shares priced at $0.39 each, will be applied together with $32.8 million in existing cash to build Abujar and continue project exploration for gold resource growth, as well as for working capital.

The fundraising also complements Tietto’s debt strategy of a US$130-140 million (A$179-193 million) loan facility though Taurus Mining Finance Fund, announced last week.

“With support for this $85 million placement, we now have funding in place to allow us to build Abujar and transform Tietto into West Africa’s next gold producer as we bring the project into production on schedule in the 2022 calendar year,” Tietto managing director Dr Caigen Wang said.

“We welcome the backing of all placement participants, including the exciting addition of Zhaojin Mining to the register, and thank our existing shareholders for their ongoing support.”

“We look forward to putting investors’ money to work to deliver this exciting West African gold development story, targeting first gold production by the end of calendar year 2022,” he added.

As part of the placement process, Dr Wang along with other board members Paul Kitto, Francis Harper and Mark Strizek have agreed to sell a total of 6 million Tietto shares at the placement price to institutional investors. The proceeds will fund the exercise of options in the company.

Settlement of the first tranche of the placement is expected to take place around 26 November. The second tranche will be subject to shareholder approval and is expected to settle around 14 January 2022.

Abujar early works program launched

Tietto recently released a definitive feasibility study for Abujar, which demonstrated robust economics and estimated a first-year gold production of 260,000 ounces, with 1.2 million ounces anticipated in the first six years of mining.

The company has now commenced a US$8.65 million (A$11.93 million) early works program including front-end engineering and design (FEED), site and camp construction.