TG1 raises $1.2M in top up placement - drilling for copper next quarter
Our micro cap exploration investment TechGen Metals (ASX: TG1) just raised $1.2M in a top-up placement to the rights issue completed recently.
TG1 has now raised a total of ~$3.7M split:
- $2.5M in a non-renounceable rights issue
- $1.2M in a top-up placement.
Both were done on the same terms - 1.8c per share with 1:2 free listed option exercisable at 3.6c with a 9 September 2028 expiry date.
We don’t usually see top-up placements when rights issues are underwritten - so we take it as a good sign there was demand from the market to get into TG1.
We participated in the rights issue and took up our full entitlements.
We also noticed TG1’s managing director Ashley Hood would be taking $100K in the top-up placement.
TG1 after the capital raise shares come out will be capped at ~$10M (at today’s 2.7c share price) having just raised ~$3.7M in cash.
We think the market cap is still very much leveraged to a discovery at these levels especially with the cash runway through to two high impact drill programs.
The two big drill programs we are looking out for are:
Copper-gold-antimony (Mt Boggola, WA)
TG1 Wants to drill this project next quarter.
Mount Boggola was drilled in 2022 by TG1 and $21BN Newcrest back in the 1990’s.
TG1 recently ran some new 3D modelling of the IP targets here and it turns out, all of that old drilling missed the big chargeability anomalies by “matter of ten to twenty metres”.
For anyone new to exploration IP targets are generated when a company measures chargeability under the surface (basically checking to see if the rocks underground are conductive).
Higher chargeability is usually a good signal for somewhere to drill to find copper mineralisation.
Interestingly, three of the four Newcrest drillholes actually had primary copper sulphide mineralisation in them…
And the drilling happened metres away from copper outcrop:
Copper-gold-silver (Blue Devil, WA)
TG1 is looking to drill this project at some point between Q4 2025 and Q2 2026.
(This is the one we are looking forward to the most)
TG1 has completed a heritage clearance survey at the project and is waiting on the final report before moving forward to signing heritage agreements.
The heritage agreements are a precursor for TG1 being able to get on the ground here.
Here are the targets where TG1 has rock chips (grading up to 50.5% copper and 18g/t gold) lining up with big EM targets:
See our deep dive on the Blue Devil target here: TG1: Reveals new giant copper-gold drill targets at Blue Devil project
