Tulla Resources Plc ("Tulla Resources" or the "Company") (ASX:TUL) is pleased to announce it has received firm commitments for a A$20 million two-tranche placement at $0.38 per CDI.
Funds raised from the Placement will be applied to fund the Company's proportion of Norseman rampup and for working capital and offer costs.
Petra Capital Pty Limited acted as Sole Lead Manager and Bookrunner to the Placement.
Executive Director, Mr Mark Maloney said:
"We are delighted with the support for the placement and welcome a number of new investors to the register. On behalf of the Board of Directors, I would also like to thank our existing security holders for their ongoing support.
Placement funds will assist in supporting the ramp-up of the Norseman gold project whilst also funding potential future optimisation and development opportunities at the asset. We are excited by the underlying value of the Norseman gold project and the potential of our lithium and iron ore interests."
Placement Overview
Tulla Resources has received firm commitments for A$20 million in gross proceeds via a two tranche placement at an issue price of A$0.38 per CDI ("Placement Price"). The Placement Price represents a 15.6% discount to the last traded price and a 15.3% discount to the 10 traded day VWAP of the Company's CDIs to 21 October 2022.
Tulla Resources will issue a total of 52,631,579 new CDIs consisting of 40,375,863 new CDIs, for approximately A$15.3 million, under its existing placement capacity under ASX Listing Rule 7.1 and 12,255,716 new CDIs, for approximately A$4.7 million, will be issued subject to security holder approval which will be sought at the annual general meeting of the Company to be held on 15 December 2022.
Tranche one of the Placement is expected to settle on or around 2 November 2022 with new CDIs to be issued on 3 November 2022. Tranche two of the Placement will settle on 21 December 2022 and be issued on 22 December 2022.
Recommencement of Trading
Tulla Resources' existing CDIs are expected to resume trading on the ASX today.
About us:
About Tulla Resources Plc
Tulla Resources is a diversified Resources House whose primary asset is its 50% interest in the flagship Norseman Gold Project.
In 2007 Norseman Gold Plc acquired Central Norseman Gold Corporation Pty Ltd (CNGC), the operating entity of the Gold Project. Norseman Gold Plc changed its name to Tulla Resources Plc on 30 December 2020.
On 17 March 2021, Tulla Resources Plc was admitted to the Official List of ASX and the Company commenced trading on 18 March 2021.
The focus of Tulla Resources is to continue to work closely with its joint venture partner to bring the Norseman Gold Project back into production scheduled for August 2022. The Norseman Gold Project also provides an excellent opportunity for exploration and future production growth as demonstrated by the excellent results from the exploration program centred on the Scotia Mining Centre.
Tulla Resources has an experienced and well credentialed Board. The Company has a strategy of developing and acquiring other resource assets to provide commodity and geographical diversity.
In December 2021 with its JV Partner, Pantoro South, the Company entered into a binding term sheet with a subsidiary of Mineral Resources Limited (MIN) in respect to its lithium deposits at Norseman.
In respect to its 100% iron ore asset at Norseman, in June 2022 Tulla Resources entered into an Offtake and Funding Agreement with Constance Iron Limited (formerly Koch Metals Limited) which is subject to the condition precedent of Constance Iron Limited being admitted to the London Stock Exchange.
