Tombola shakes tin for Mt Freda

Tombola Gold has received firm commitments to raise $10.5 million (before costs) via a placement to institutional and sophisticated investors.

Mining is already under way and expansion in progress at the new company, as it fast tracks to first cash flow in 2022, with scoping studies indicating potential for a profitable operation.

Its Mt Freda Complex in Cloncurry, Queensland, consists of several gold mines including the Mt Freda Gold Project and Golden Mile Project, which are in close proximity to core infrastructure in the area including roads, power and on-site facilities.

The company has already advanced construction of its own gold processing plant on site, and has a well-defined expansion strategy of utilising near-term gold cashflows to drive resource expansion with life-of-mine extensions and exploration focus.

The placement was at an issue price of $0.06 per share, representing a 5 per cent premium to the 15-day volume weighted average price and a 7.7 per cent discount to last close price of $0.065.

It means that Tombola is now fully financed into initial gold production at its flagship Mt Freda mine, with production scheduled for Q3, CY2022.

The balance of the proceeds will be used to progress copper, cobalt and gold exploration activities in Cloncurry and to commence a modern drilling campaign at the company’s highly prospective South Australian copper projects.

Tombola Gold also holds the Burra Project, a strategic tenement in a geologically prospective area including the G2 Structural Corridor, host to Olympic Dam, Carrapeteena, Prominent Hill, with multiple historic high-grade copper and gold workings. The Company has already secured a $300,000 grant from South Australian Government’s Accelerated Discovery Initiative.



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