Tolu Minerals announces significant funding milestone

Tolu Minerals (ASX:TOK) has successfully secured firm commitments for a A$26.7 million placement. This funding comes from sophisticated and institutional investors at an issue price of A$0.80 per share. The funds are earmarked for exploration and redevelopment at the Tolukuma Gold Mine, and will also cover working capital and costs related to the offer.

Summary and outlook of Tolu Minerals' strategic plans

Tolu Minerals has raised A$26.7 million to support its strategic initiatives at the Tolukuma Gold Mine. The funds will be used to accelerate exploration and redevelopment activities, including study work, mine development, and dewatering. The placement was well-received, indicating strong demand from both domestic and international investors. With a proforma cash position of approximately A$29.4 million before costs, Tolu Minerals is poised to enhance its resource base and return to high-grade gold production. The successful placement aligns with the company's strategy of utilizing existing infrastructure and quick return to production, supported by global institutional gold funds and existing shareholders. Settlement for new shares is expected by the end of October 2024, subject to ASX approval.

Executive commentary on funding success

We are pleased with the strong support from both new and existing investors, which reflects the confidence in our strategy to leverage the existing infrastructure at the Tolukuma Gold Mine to grow our Mineral Resource and return to high-grade gold production.