Taruga Minerals Ltd (ASX: TAR) secured firm commitments to raise up to $3.5 million in a strongly backed offering of 125 million fully paid common shares at $0.028 per share.
The placement is supported by the directors of the company, who have committed to subscribe for a total of $225,000 to the placement.
Encouragingly, there was strong participation from domestic institutional investors, as well as new and existing sophisticated investors.
The funds raised will be used for:
- the first JORC REE resource at Morgans Creek;
- regional exploration of rare earths;
- copper prospecting; and
- general working capital and supply costs.
Taruga CEO Thomas Line said, “This is a fantastic achievement for the company, and we are now well equipped to continue our growth trajectory for the foreseeable future, strategically expanding our rare earth elements and our South Australian copper assets.
“We warmly welcome new domestic institutional investors and sophisticated new investors to the register.
“It was also fantastic to see a strong turnout from existing sophisticated investors, as well as the Targua Board of Directors who subscribed for a total of $225,000 of Taruga stock in the placement.”
Bell Potter Securities Ltd acted as lead manager for the placement.
$3.275 million of the placement is being made to unrelated parties without shareholder approval and using the company’s placement capabilities under Listing Rules 7.1 and 7.1A, and is expected to close on or about May 10 November 2022.
Subject to shareholder approval, the directors of the company (or their nominees) will request up to $225,000 of shares on the same terms as the placement.