THE BOURSE WHISPERER: NTM Gold (ASX: NTM) announced an equity issue to Institutional and Sophisticated Investors, funds from which will be used to accelerate exploration on the company’s Redcliffe gold project near Leonora in Western Australia.
NTM Gold signalled a raising of $3 million via a primary issue of 60 million shares at an issue price of five cents per share.
Bell Potter is broker to $1.5 million of the Placement to a single Institutional investor while a further $1.5 million is to be placed to G Harvey Nominees Pty Ltd.
Both investors are existing shareholders in NTM.
DGO Gold Limited, NTM’s largest individual shareholder, has the right to support in addition to the Placement so it can maintain its standing interest in NTM.
This will require a contribution of $414,500 on the same terms as the Placement.
The funding will enable NTM continue drilling at Redcliffe where the focus will be on further RC and diamond drilling programs at Hub, with two rigs planned to be on site in the next few weeks.
These programs will follow up the results achieved from drilling to date where the strike of Hub has recently been extended to 1,130m and remains open.
“NTM is very pleased to have completed the placement to two existing and strongly supportive shareholders,” NTM Gold managing director Andrew Muir said in the company’s announcement to the Australian Securities Exchange.
“The placement funds, combined with the contribution from DGO, puts NTM in an excellent position to continue drilling the Redcliffe project with two rigs heading to site soon.”