TG Metals raises $2.6m to chase golden opportunity at Van Uden

• TG Metals is raising $2.6m through a placement to drive exploration and development at its Van Uden gold project in WA
• Funds will go toward infill and extensional drilling at the project, which has been underexplored in the past decade
• TG6 says Van Uden remains open along strike and at depth

Special Report: TG Metals is doubling down on its strategic gold opportunity at Van Uden in WA, receiving strong support from investors to raise $2.6 million.

The placement of 20 million shares priced at 13c apiece to a range of institutional, sophisticated and professional investors will drive infill and extensional drilling to grow the resource.

It comes on the back of TG announcing that drilling of historical stockpiles at Van Uden has delivered a potential near-term cashflow opportunity.

A portion of the funds will also go toward exploration drilling at the Gold City prospect.

TG Metals’ (ASX:TG6) Chairperson Richard Bevan praised investor support for enabling the company to further explore Van Uden’s gold potential.

“We are very pleased to have received such strong support for the Placement, reflecting strong confidence in TG Metals’ gold exploration and development strategy,” he said.

“The funds raised will allow us to continue unlocking the value of our gold portfolio, particularly at the Van Uden deposit and Gold City prospect.”

Decade-long hiatus

Excitement around Van Uden is undoubtedly due to the fact it’s seen limited modern drilling over the past decade.

Not only that, TG6 believes the deposit remains open along strike and at depth.

The current mineral resource for Van Uden sits at 6.35Mt @ 1.1g/t gold for 227koz.

With fresh funds in the coffers, the company will be looking to expand the resource and double down on this golden opportunity.

Early cashflow

TG Metals is confident of an early cashflow opportunity at Van Uden from existing surface stockpiles at the historic gold mine.

Drilling from two of the four stockpiles at the site revealed results and Au grades of 0.8g/t and 1.0g/t, for a total of 42,933t @ 0.90g/t Au (weighted average).

Metallurgical testing is underway to support discussions with third-party mill operators, with results expected in early August.

TG6 has also secured WA government mining approval to remove the stockpiles.

With the stockpiles excluded from the current resource, and just two of four with assays received so far, TG6 is confident of a clear pathway to near-term production.

This article was developed in collaboration with TG Metals, 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.