Titan Minerals has raised $18 million via a placement to drive drilling at its Dynasty project in Southern Ecuador and deliver a JORC Resource in Q4 2021.
The company will issue 180,000,000 shares at $0.10 per share, with directors to acquire up to an additional $2.2 million of shares – subject to shareholder approval.
Once the placement is completed Titan Minerals (ASX:TTM) will have $18m in cash and is expected to receive a further US$7.5m in staged payments as proceeds of the Zaruma asset sale announced earlier in the year.
As well as funding Dynasty drilling, the money will be used to complete systematic exploration campaigns at the Linderos and Copper Duke projects.
Settlement of new shares under the placement is expected to occur on Wednesday 13 October 2021.
Canaccord Genuity (Australia) Limited acted as lead manager and sole bookrunner to the placement and Bacchus Capital Advisers acted as financial adviser.
Investors excited by portfolio potential
“The recent raise has attracted a number of new institutional sophisticated natural resource funds that are as excited by the potential at Dynasty and Titan’s portfolio as we are,” Titan CEO Laurie Marsland said.
“The additions of Peter Cook as chairman and Michael Skead as executive VP Exploration has attracted a lot of interest from new investors as we now look to unlock the value of our portfolio in Southern Ecuador.
“We look forward to delivering a JORC Resource at Dynasty in Q4 2021 before unlocking its true size and scale and continuing our systematic exploration campaigns at Linderos and Copper Duke.”
Titan chairman Peter Cook said the company is pleased with the strong support it received from Australian and global institutions.
“I’m excited by the potential size and scale of these assets,” he said.
“We believe we have a portfolio of very exciting projects in Ecuador and are confident the funds raised will enable further exploration that will result in these projects quickly emerging as substantial assets.”
Director participation and debt conversion
In addition to the placement, non-executive director Nick Rowley intends to subscribe for an additional $185,000 of new shares – subject to shareholder approval to be sought at an upcoming Extraordinary General Meeting.
Plus, certain debt holders have agreed to convert $3,017,148 of debt to equity, resulting in the issue of a further 34,838,149 new shares.
This includes the conversion of $703,801 by director Matt Carr, which is also subject to shareholder approval at the EGM.
In addition, 13,150,000 of the shares issued (without the requirement of shareholder approval) upon conversion of the debt, will be sold via on-market crossing at the placement price to the following directors:
- Nick Rowley to purchase 3,150,000 new shares for $315,000; and
- Peter Cook to purchase 10,000,000 new shares for $1,000,000.
This article was developed in collaboration with Titan Minerals Limited, 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.