Tesoro ramps up El Zorro gold development in Chile with $11m cap raise

• Tesoro Gold to raise $11m at 2.4 cent per share to advance El Zorro development
• Gold project could be similar to multi-million ounce deposits in Tintina province North America
• Proceeds will fund Resource update, Scoping Study and permitting process

Special Report: Tesoro Gold has received binding commitments to raise A$11m via a placement at 2.4 cents per share to rapidly advance the development of its El Zorro gold project in Chile.

The Project within the 1.5Moz Ternera Deposit, which remains open in all directions, is an intrusive related gold system similar to that of the Tintina province in North America where deposits tend to clump together.

The potential for the Project to become a multi-million ounce new district has caught the eye of South African behemoth Gold Fields – one of the world’s 10 largest gold producers with a $31 billion market cap – holds 17% of Tesoro Gold (ASX:TSO).

Proceeds from this placement will fund new discovery drilling, the completion of an updated Resource Estimate for Ternera, an updated Scoping Study, and also fully fund the El Zorro permitting process.

District-scale discovery drilling

The placement has seen strong demand from domestic and global institutions and sophisticated investors, including a commitment of $1,750,000 from Gold Fields.

Growth drilling is first cab off the rank, with the company to target Ternera expansion as well as high-priority, district-scale new discovery targets.

“We are very pleased to receive further investment from Gold Fields and our major shareholders, and to welcome several new investors to our register who recognise the significant potential of our vast district-scale exploration tenure and the proven development potential at the El Zorro gold project,” TSO Managing Director Zeff Reeves said.

“This additional funding allows us to aggressively advance the El Zorro Project through drilling, technical studies, and permitting over the next 12 months.

“We have worked closely with the Gold Fields technical team since their initial investment in November 2022, and their ongoing support for regional exploration in particular validates our view that the El Zorro gold project is a highly prospective district deserving of further exploration and investment.”

This article was developed in collaboration with Tesoro Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.