Perth-based listed mining and exploration company Tennant Creek Gold has announced it will complete a recapitalisation worth more than $7 million by making a placement of shares to a London-based mining funds manager, approved at a meeting of shareholders.
Tennant Creek will make a $1.35 million placement of shares to RAB Special Situations, giving it 16.3 per cent of the company.
The recapitalisation also includes the creation of a new company, Thor Mining, which will list on the Alternative Investment Market of the London Stock Exchange.
Thor will house Tennant’s Australian specialty metals projects, including the group’s molybdenum-tungsten assets, and is presently completing a £425,000 seed capital raising, as well. In addition, Tennant is in the process of completing a compliance listing on the Frankfurt Stock Exchange.
After these transactions, Tennant Creek’s debt free balance sheet will comprise assets including around $2.5 million cash, a 24 per cent interest in AIM-listed Thor Mining and several gold, nickel and base metal projects in the Northern Territory and WA.
Investors flocked to Tennant after it proposed a sale of its iron ore assets to another UK-based and AIM-listed company Red Rock Resources, last month.
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