Tertiary Minerals PLC (AIM: TYM) is planning a fresh equity fundraising to accelerate work at its flagship Mushima North project in Zambia following encouraging Phase 4 drilling results.
The placing is being arranged by joint broker SP Angel Corporate Finance, with proceeds expected to support further development work at Mushima North and provide additional general working capital.
Tertiary has not yet disclosed the amount it intends to raise, the issue price or the number of new shares to be issued.
Because the company does not currently have sufficient shareholder authorities to complete the fundraising, the transaction will require approval at a general meeting. A shareholder circular and meeting notice are expected after the fundraising terms have been finalised.
Tertiary has also elected to use AIM’s new Capital Access Window, with trading in its shares temporarily suspended from 7.30am on Monday to provide pricing stability while the raise is conducted.
Trading will remain suspended until the company announces the outcome of the fundraising.
For investors, the key issue will be the size and pricing of the placing, as these will determine the extent of dilution. The positive aspect is that fresh capital could allow Tertiary to accelerate drilling and resource-definition work at Mushima North, but the market will be watching closely for the discount applied to any new shares.
