Tennant Creek Gold to raise $11.5m for exploration program

Subiaco-based mineral explorer Tennant Creek Gold Ltd has announced plans to raise $11.5 million in a share and options issue to raise funds for an exploration and development program at its Manbarrum Zinc-Lead-Silver Project.

Sydney-based stockbroker Southern Cross Equities has agreed to act as lead manager to a $2.3 million share placement and underwrite a number of listed and unlisted options to raise $9.2 million.

The full text of a company announcement is pasted below

Diversified resource group Tennant Creek Gold Limited (ASX: TNG - "TNG") today announced a $2.34 million share placement and an underwriting agreement with Sydney-based stockbroking firm Southern Cross Equities for the exercise of different classes of April and May 2007 options, amounting to a total $11.52 million capital raising (prior to costs).

The funds raised, together with existing cash reserves, will underpin an accelerated exploration and development program at TNG's 100%-owned Manbarrum Zinc-Lead-Silver Project in the Northern Territory during 2007.

This will include an intensive program of resource extension drilling focusing on the Sandy Creek zone (initial resource of 10.5 million tonnes at 3.4% zinc equivalent) as well as drilling targeted pods of MVT-style base metal mineralization within a potential global MVT District identified by TNG and previous explorers at Manbarrum.

The capital raising will underpin TNG's corporate objective of establishing a globally significant inventory of zinc-lead-silver resources at Manbarrum and advancing the Project towards pre-feasibility study as rapidly as possible.