$2M raised to fund copper drilling in WA

Yesterday our junior exploration Investment TechGen Metals (ASX: TG1) raised a fresh batch of capital which it plans to use on the drilling programs at its two copper projects in WA.

TG1 raised $2M via a placement at 18.5c per share, with the shares expected to be issued on the 22nd of September.

We also noted that all of the directors participated in the placement for a combined total of $50k.

What we found interesting was that the deal was done at a relatively small discount of ~5.1% to TG1’s last traded price, especially given the current risk off sentiment around markets.

Generally, when market sentiment is low, capital raising for junior explorers is done at steep discounts. As shareholders, we think the capital raise was well managed by the company.

TG1 should now have a relatively strong cash balance to complete its drilling programs across its two WA copper projects, with TG1 already actively drilling the first (Station Creek) right now.

We have noted in previous articles the two very distinct IP anomalies TG1 found right underneath high grade copper rock chips with grades up to ~54.8%.

We are hoping that the red anomalies in the image below are full of copper.

To read up on why we think these targets are interesting, check out the “TG1’s Copper/Gold projects in WA are also shaping up nicely” section of the following note we wrote.