TTM completes $5.5M capital raise
Our copper-gold Investment Titan Minerals (ASX: TTM) just closed a $5.5M capital raise at 5c per share.
Interestingly, of the $5.5M raised, directors committed to a $500K investment into TTM.
Seeing the directors back the company with their own cash is always a good sign when it comes to small cap companies.
Usually when directors start to buy shares in their own companies it means they endorse the with the company’s strategy and are aligned with shareholders in wanting to see the company do well (and see the share price go higher).
We also like the fact that TTM chose to do a relatively smaller capital raise so as to limit dilution.
The small $5.5M capital raise is enough to give the company more time to run drill programs and see if it can deliver more progress.
Ultimately, if TTM can hit some good results in any of its next drill programs, the management team would hope the company’s share price moves higher and capital is raised at a higher valuation.
Raising more capital at a higher valuation gives the company more cash with far less shares being issued which is good for existing shareholders.
Of course there is no guarantee that happens and a range of risks could materialise. That being said, we as existing shareholders hope TTM can deliver some material news over the coming 6-12 months.
When are the placement shares being issued?
- $5M (100M shares) being issued on the 14th of August.
- $500K (10M shares) being issued ~19th of September - these are the shares being issued to the directors and so need to be approved by shareholders at a general meeting.
What’s next for TTM:
More exploration at Dynasty 🔄
TTM still plans to continue drilling out and testing regional targets at the Dynasty Project.
Ultimately the goal here is to expand the company’s existing 3.12m ounce gold resource and add new discoveries BEFORE the company moves the project into the feasibility stage.
Target generation works at the Copper Duke project 🔄
Here TTM is currently running surface mapping, soil and rock chip sampling programs over high-priority target areas.
All of the ongoing work is part of the pre-drilling target generation works - eventually after permitting is organised, TTM plans to drill those targets.
Desktop work for the Linderos project 🔄
Here TTM is currently processing the results from the maiden drill program.
The next step here is to plan for the company’s 2nd phase of drilling either by building a 3D geological model to base its drilling on OR by running an IP geophysical survey which will inform where TTM drills next.