Capital Raising Program
Brisbane, Nov 4, 2022 AEST (ABN Newswire) - Tombola Gold Ltd (
ASX:TBA) is pleased to announce the successful closing of a book-build to privately place approximately 132.7 million new fully paid ordinary shares (the Private Placement Offer) at an issue price of $0.026 per share (the Placement Issue Price), to qualified institutional and sophisticated investors.
At the time of applications closing, Tombola has received approximately $3,450,000 in applications. Subject to the receipt of the relevant application monies by 11 November 2022, Tombola will have closed the Private Placement Offer for approximately $3,450,000 before costs including broker commissions.
The Private Placement shares are currently scheduled for allotment on 14 November 2022, and once allotted, will rank equally with existing fully paid ordinary shares on issue, and will be issued utilising the Company's available placement capacity under ASX Listing Rule 7.1.
Share Purchase Plan
In order to present shareholders who did not take part in the Private Placement Offer with an opportunity to invest at the Placement Issue Price, the Company will make offers under a Share Purchase Plan (SPP) to those shareholders who are registered shareholders as 7:00pm (Sydney time) on 3 November 2022 (the Record Date) with a registered address in either Australia or New Zealand (Eligible Shareholders). Eligible Shareholders will each have the right to apply for up to $30,000 worth of new shares.
The SPP will be fully underwritten to $1 million by Ilwella Pty Ltd (Underwriter). The material terms of the Underwriting Agreement are disclosed in Appendix B of this announcement. On completion of the SPP, the Company will be required to pay the Underwriter an underwriting fee of 6% of the underwritten amount and issue 10,000,000 unlisted options exercisable at $0.06 expiring 36 months after the date of issue. If required, the Company will seek shareholder approval for issue of the Options.
If demand exceeds $1,000,000 under the SPP, the Company will apply a pro rata scale back so as to ensure that all Eligible Shareholders who apply for shares under the SPP are treated equitably.
The SPP is proposed to open on 11 November 2022 and close on 2 December 2022. A full timetable in respect of the Placement and SPP is provided at Appendix A*.
The proceeds of the Private Placement and the SPP will be used by Tombola to fund the following:
- accelerated mining and processing for the Great Australian Mill Gold Production Plant (GAM);
- the cash components as required for the Lorena and True North Tenement acquisitions;
- the recommissioning of GAM and Lorena gold processing facilities; and
- overheads and working capital.
A booklet with full details will be prepared and despatched to Eligible Shareholders on the opening of the SPP. In the meantime, for further information about the capital raising program in general, shareholders can contact the Company via email.
*To view the timetable, please visit:
https://abnnewswire.net/lnk/2DID9838
About Tombola Gold Ltd
Tombola Gold Ltd (ASX:TBA) is a company assembled by experienced, exceedingly well-qualified and all very well rounded team members that have previously floated exploration companies which achieved major resource discoveries and success. Between the Tombola team members, Tombola as a company have well over 100 years of accumulated experience in the mining, exploration and resource sector. Tombola principal objective is to acquire assets to explore for and develop a large IOGC or porphyry deposit funded by low-risk gold production resources. To that end, Tombola has a license covering 970 sq km prospective for gold/copper in the Mount Bryan-Red Banks-World's End area near Burra in South Australia; with strategic agreements with Queensland Mining Corporation.
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