Tanga to raise $3.5m for gold project

Perth-based gold explorer Tanga Resources has launched a $3.5 million capital raising for its Singida project in Tanzania.

Tanga has raised $2 million through the placement of 40 million shares at 5 cents each to new institutional and sophisticated investors, and it plans to undertake a one-for-11 entitlements issue to raise a further $1.5 million.

Proceeds from the raising will be used to fund ongoing exploration and development of the company’s Singida gold project, with an initial focus on the Winston discovery.

Singida consists of 12 prospecting licences covering 410 square kilometres of Achaean greenstones in Tanzania.

“We are pleased to have completed the placement which shows strong support from a range of new institutional and sophisticated shareholders,” Tanga chairman John Jones said.

“We welcome them to our register and thank them for their support in these tough times for the industry.

“The placement, together with the proposed entitlements issue, will provide the ability to significantly upgrade our work programs in Tanzania.”

Tanga also owns ten prospecting licences covering 154sq kilometres in another part of Tanzania, named the Geita gold project.

Bell Potter Securities aced as lead manager to the raising.

Tanga shares were 16.6 per cent higher to 6.3 cents at 11.20am.