THE BOURSE WHISPERER: Tanami Gold (ASX: TAM) has reached agreement with Patersons Securities to underwrite a renounceable pro-rata entitlements issue to raise $65.3 million before costs, subject to Patersons being satisfied with the due diligence process and the company issuing a Prospectus.
The Entitlements Issue will be made to eligible shareholders at an issue price of 20 cents per share on the basis of five new shares for every four shares held.
The company’s largest shareholder, Allied Properties Resources, has committed to taking up their entitlement.
Proceeds of the Entitlements Issue will be used to:
– Repay the company’s current debt to AP Finance in full;
– Fund the completion of a Definitive Feasibility Study for the development of the Central Tanami project;
– Fund the costs of the Entitlement Issue; and
– Provide additional working capital.
A Prospectus setting out the details of the offer will be lodged with the Australian Securities and Investments Commission and the Australian Securities Exchange on or about Friday 8 February 2013.