TTM receives US$10M cash from a strategic investor.

Our Gold and copper Investment Titan Minerals (ASX: TTM) just received the US$10M cash from its strategic investor announced last week.

Last week US$3.5BN Lingbao came in for a 9.9% equity stake in TTM in exchange for US$10m.

We covered the news of the deal: TTM’s 3.1Moz gold 22Moz silver project: Chinese strategic investment of US $10M and 90 day exclusivity to get a deal done.

The most interesting takeaway from the announcement last week was that it also came with a 90 day “exclusivity period” on negotiations over TTM’s gold and silver assets.

TTM has four assets in southern Ecuador including:

• The Dynasty Gold Project which is TTM’s most advanced asset and hosts 3.1M ounces of gold and 22M ounces of silver.
• The Linderos copper project, where Gina Rinehart’s Hancock is earning in up to a 80% stake in the project in exchange for US$2M cash plus US$120M in exploration spend. And
• Two earlier stage copper assets where we think TTM could do similar to the deal done with Gina.

Lingbao and TTM have 90 days of exclusivity to do a deal on TTM’s Dynasty project.

(Source)

In addition to the exclusivity, Lingbao also have a 180 day right of first refusal on the project.

This gives Lingbao the right to match any other offer on the project, so TTM could also be doing other negotiations for a deal it is happy with knowing that there is a 2nd buyer lurking in the background.

Interestingly, Lingbao also signed a right of first refusal on TTM’s two earlier stage copper assets too…

(Source)

See our deep dive on the deal done with Lingbao here: TTM’s 3.1Moz gold 22Moz silver project: Chinese strategic investment of US $10M and 90 day exclusivity to get a deal done.

What’s next for TTM?

More drilling at Dynasty gold project 🔄

We are now inside the 90 day exclusivity period TTM has with Lingbao, so we could see some more corporate news from TTM inside the next few months.

More drilling at Dynasty gold project 🔄

TTM is currently at Dynasty with a view of upgrading the projects resource estimate.

We expect the company to this drilling over the coming months and set itself up for a resource upgrade.

Resource upgrade/update at Dynasty 🔲

TTM is working towards a resource upgrade on its project. A presentation from earlier in the year set a +5M ounce gold target for its Dynasty asset:

(Source)

More drilling at the Linderos Copper project (Gina JV) 🔄

The JV with Gina recently completed the second stage of the earn-in agreement AND kicked off exploration under the third phase of the deal.

We are looking forward to results from this stage of works:

(Source)