22/11/2021 - 15:23

Tietto, Wiluna raise $140m for gold projects

22/11/2021 - 15:23

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Tietto Minerals has secured the remaining funds needed to develop its Abujar gold project in Cote d'Ivoire, while Wiluna Mining is advancing an expansion of its operations in WA.

Tietto, Wiluna raise $140m for gold projects
Tietto is building a $US200 million gold project in Côte d'Ivoire. Photo: Tietto Minerals

Tietto Minerals has secured the remaining funds needed to develop its Abujar gold project in Côte d'Ivoire, while Wiluna Mining Corporation is advancing an expansion of its operations in Western Australia.

This morning, Perth-based Tietto announced a $US62 million ($A85 million) share placement, less than a week after revealing $US140 million in debt funding for its Abujar project, located 30 kilometres from the regional city of Daloa.

Abujar estimated to cost $US200 million to build, according to a recent definitive feasibility study.

The project is forecast to deliver 260,000 ounces within the first year of its 11-year mine life, with first production expected at the end of 2022.

“Abujar is an exciting and robust gold project, as demonstrated by our definitive feasibility study delivered last month, and we are excited to enter this new chapter of Tietto’s history,” managing director CaiGen Wang said of today’s announcement.

He said an early works program was already under way, including front-end engineering design and site and camp construction.

Tietto will allocate the placement proceeds, together with $32.8 million in existing cash, toward project construction, exploration and working capital.

The raising includes an investment from Zhaojin Mining, which Tietto says is one of China’s biggest goldminers.

About 208 million shares will be issued in total, at 39 cents each.

Tietto closed 3.4 per cent lower this afternoon to trade at 43 cents.

Meanwhile, West Perth-based goldminer Wiluna Mining has secured $53 million from a placement to advance the expansion of its namesake operation in the northern Goldfields.

First production from stage one of the expanded operation is expected before the end of fiscal 2022.

The raising is priced at $1 a share and is being led by Arlington Group Asset Management.

It includes investments from Delphi Group and Polymetal International, amounting to about $25 million, and from Russian mining executive Vladislav Sviblov, who is investing $15 million.

Wiluna (formerly Blackham Resources) said it would allocate some of the funds to pre-production mining and development activities, processing infrastructure, drilling, and debt repayments.

Its shares closed down 3.9 per cent this afternoon to trade at $1.10.

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