TMR completes $2.5M capital raise - Maiden resource next.
Shares Held: 8,148,000
Options Held: 4,716,000
Our Canadian gold Investment Tempus Resources (ASX: TMR) just raised $2.5M in the lead up to its 2023 exploration program.
TMR raised $2.5M at 4c per share with an attaching one for two free option.
We participated in this placement.
This means the capital raise will see TMR issue:
- 62,500,000 TMR shares.
- 31,250,000 options exercisable at 7.5c per share, expiring on the 5th of September 2025.
We had been waiting for this news given TMR’s cash position at the end of the March quarter and as is typical of small cap exploration companies, the market had been waiting too.
From experience, we often see the market sell down companies when a capital raise is expected around the corner. Investors look to exit with the view that they can just buy back in after the capital raise.
We have seen this play out in TMR’s share price with the company hitting all time lows of 4.4c per share this week.
In the short-term we expect to see TMR’s share price to trade sideways or “churn” as some of the investors who took the placement look to lock in a small profit.
As long term Investors, we hope that the company’s progress at a project level will ultimately dictate the direction of which way the company’s share price moves.
With this raise in place, it should help TMR make progress towards our ultimate aim for our Investment.
Our ‘Big Bet’ for TMR:
“TMR becomes a gold producer following the discovery of enough new gold sources to justify the restart of its onsite gold mill.”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done and many risks involved - some of which we list in our TMR Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.
We note that with the gold price strong, we are waiting for market sentiment towards gold explorers to pick up and hopefully sweep up TMR in its wake.
Particularly as TMR is a more advanced explorer with what we think is an easier pathway to production than companies that are just starting out on their exploration journey.
What’s next for TMR?
Updated mineral resource estimate 🔄
The current focus for the company is on converting the non-JORC historical resource estimate of ~206k ounces into a JORC-compliant maiden resource estimate for the project.
TMR will include an additional ~129 drillholes that all sit outside of the current historical resource estimate.
The resource estimate is expected to be completed before the end of this quarter.
To see our deep dive on the upcoming JORC resource estimate and our 3D models for it check out this section from our last TMR note: Looking ahead to the maiden JORC resource estimate