Another $3M raised via a convertible note

Earlier this week, TMZ announced that it has secured a $3M capital raise via a convertible note agreement. This comes in addition to the $2.6M raised with Patras Capital via a similar funding agreement earlier this month.

These capital raises provide cash in the bank to execute on delivering resource updates across its project portfolio. We listed these resource updates as our primary objective for TMZ to achieve in 2022 in our 2022 TMZ Investment Memo which can be viewed here. Specifically, we are looking to see TMZ combine multiple deposits’ Mineral Resource Estimates to hit 100 Moz AgEq (silver equivalent).

Below are the key terms of the latest convertible note:

The Patras Capital funding agreement was structured similarly where conversions are being made below a 6.9c benchmark price.

We suspect that the two capital raises combined with the recent selling from major shareholder SVL will put some pressure on the share price of TMZ over the coming months as the funds are converted into shares at discounts to the market price.

What’s next: We want to see TMZ complete all of the resource updates as part of its hub and spoke strategy at its Silver projects.