TG1 raises $900k to fund gold drilling in NSW.

Our junior exploration Investment TechGen Metals (ASX: TG1) just raised $900K in fresh capital.

TG1 completed the capital raise via a placement at 7c per share.

The placement shares also came with free unlisted options on a 1 for 3 basis - exercisable at $0.20 each expiring 3 years from the date of issue.

The shares are expected to be issued on the 19th of June and the options issued after shareholder approvals planned for July.

This amount of $900k is in addition to the $1.4M balance TG1 had at 30 March 2023.

Of course since the end of the March quarter we would expect TG1 to have spent some of this cash on the drilling program it is currently running in NSW.

After the capital raise shares are issued TG1’s market cap (based on today’s share price of 7.5c) will be ~$5.8M - giving the company an estimated enterprise value of ~$3.5M.

With such a low enterprise value, we think any exploration success could be a major catalyst for TG1’s share price.

TG1 drilling for gold in NSW right now:

TG1 is drilling a total of 11 holes split 10 RC one diamond drillhole.

TG1 is following up on all of the geochemical sampling done over the last ~6-9 months with specific focus on the arease north and south of the existing discovery holes.

With the geochemical sampling programs TG1 picked up gold in soils with grades as high as 10g/t - gold in soils is typically a good indicator that there may be more gold at depth.

Below we can see where TG1 is planning to drill - to the north-south of its existing discovery:

We were out on site at TG1’s gold project only a few weeks ago, check out our site visit note here: Last weeks site visit - drill results expected in weeks...

What’s next for TG1?

Permitting for third stage of drilling 🔄

TG1 has started permitting for a 3rd stage of drilling.

TG1’s current drill permits were received well before any of the soil sampling results came in so the permits don't cover the areas to the far south or far north.

Drilling results from John Bull gold project in NSW 🔄

Going into the drill program we have set up our Bull, Base, and Bear case expectations as follows:

• Bull case = TG1 proves continuity in its discovery to the north/south or at depth with intercepts >10m and gold grades over 1g/t.
  
  
• Base case = TG1 proves continuity in its discovery to the north/south or at depth with intercepts <10m and gold grades over 1g/t.
  
  
• Bear case = TG1 hits no significant mineralisation to the north/south or at depth of its discovery.