Thomson locks in $2.6 million placement for Texas silver via Patras Capital

Thomson Resources has picked up the support of a strategic investment fund to lock in a $2.6 million placement to bankroll exploration activities.

It comes after Thomson (ASX:TMZ) announced a 19.5Moz silver equivalent mineral resource for its key Mt Gunyan, Silver Spur and Twin Hills deposits in the Texas Silver District at its New England Fold Belt Hub and Spoke project.

The placement from Patras Capital will secure funding for the next four months as Thomson looks to keep growing its resource base.

The Texas silver district boasts historic production of 4.2Moz, something Patras are extremely familiar with.

They are clearly believers in Thomson’s approach to reviving the project, which incorporates silver, gold and base metals projects across northern New South Wales and south Queensland.

Patras previously managed a ~$10 million investment in Macmin Silver, the previous operator of the Texas project.

Thomson’s ambitions for Texas and the New England project are higher. It has a stated aim of targeting an aggregate of 100mMoz of silver equivalent available to a central processing facility.

It already holds 40.2Moz at 86 g/t silver equivalent across its Texas and Conrad projects.

A mineral resource estimate is also being prepared for the high-grade Webbs silver and base metals deposit, with a large geophysics program underway to identify high grade Silver Spur style targets for a second quarter drill program.

Thomson is also undertaking preparations for a met and process study for its planned central processing facility.

Terms of the deal

Patras will make its contribution to Thomson in four tranches of $650,000, with the first payment made today.

The placement price is 6c for the first tranche with a benchmark price of 6.9c a share.

Future funds advanced in the second settlement tranche will be adjusted for Thomson’s share price performance during the 20 days between settlement of the tranches.

New England is not the only game for Thomson.

It is also progressing exploration to unlock the potential of its Yalgogrin and Harry Smith gold projects in the Lachlan Fold Belt and the Bygoo tin project.

That could form another hub and spoke style project like New England, while Thomson also holds the Chillagoe gold and Cannington silver project in Queensland.

This article was developed in collaboration with Thomson Resources, 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.