TG1 completes ~$1M raise, famous investor now on registry
Our microcap exploration Investment TechGen Metals (ASX: TG1) has accepted binding commitments for a ~$916,000 capital raising to accelerate exploration across its portfolio of gold and battery metals projects in Australia.
The company will issue ~30.5M new shares at 3 cents each in a placement to institutional and sophisticated investors.
TG1 will also issue one free attaching unlisted option for every three new shares subscribed for, exercisable at 4.5 cents with a three-year expiry.
We participated in this raise.
Of particular interest to us, is the fact that famous investor Tony Rovira, who is the recently retired Managing Director of Azure Minerals participated in the raise.
During his time as Managing Director of Azure, Tony Rovira lead the company from a major lithium discovery, all the way to a joint acquisition for $1.7BN by SQM and Gina Rinehart’s Hancock Prospecting in May of this year.
He knows a thing or two about making major discoveries, so we see his participation in TG1’s raise as a good indicator of what TG1 may be able to achieve across its projects.
Below is a quick summary of what the funds will be used for:
(Source)
On the topic of antimony, TG1 has picked up over five different rock chips with grades above 1% across a ~1.2km x 400m soil anomaly - including one as high as 7%.
TG1 finds 7% antimony in rock chip - nice timing
Antimony is a commodity needed for a range of defence applications which include infrared missiles, nuclear weapons and night vision goggles, and it’s mostly as a hardening agent for bullets and tanks.
Meanwhile, we remain keen on the copper macro thematic long term, and TG1 has projects in the Kimberly where TG1 has high grade copper rock chips up to 50.5%.
We want to see these projects further explored and this fresh funding will enable that.
How does this news impact our TG1 Investment Memo?
We see this raise as mitigating funding risk for the moment.
Funding risk
As a junior exploration company, TG1 will need to seek additional capital to advance the company’s projects. Access to capital could be impacted by a combination of the above risks.
TG1 also has a lot of tenements that each carry ongoing licensing costs. In order to fund exploration of these tenements, TG1 will need to raise capital.
Source: 27 April 2023 TG1 Investment Memo
What’s next for TG1?
In today’s announcement TG1 outlined the following newsflow to come:
(Source)
