Tungsten Mining Secures $4.5M in Capital to Boost Mt Mulgine Project
TGN (TGN) Share Update December 2024 Tuesday 17th
Tungsten Mining Completes $4.5M Capital Raising
Tungsten Mining NL (ASX:TGN) has successfully completed a $4.5 million capital raising through the issuance of unsecured and unquoted convertible notes, aimed at funding the acquisition and development of the Mt Mulgine Project.
Instant Summary:
- Raised $4.5M through unsecured and unquoted convertible notes.
- Funds to be used for Mt Mulgine Project acquisition and development.
- Convertible notes issued at a 31.25% discount to the last closing share price.
- Notes have a 10% annual interest rate, maturing in 12 months.
- Strong investor support for TGN's strategic direction.
Capital Raising Details
Tungsten Mining NL has announced the successful completion of a $4.5 million capital raising. This was achieved through the issuance of unsecured and unquoted convertible notes to professional and sophisticated investors. The funds raised will be directed towards the acquisition costs of the Mt Mulgine Project and advancing studies related to the project, along with general working capital.
The convertible notes, each with a face value of $1,000, are convertible into ordinary fully paid shares at a conversion price of $0.055 per share. This price represents a 31.25% discount to the last ASX closing share price of $0.080, which was recorded before the company's trading halt on 16 December 2024.
Terms and Conditions
The convertible notes come with an interest rate of 10% per annum, payable quarterly in arrears, and have a maturity date set for 12 months from the date of issue. Investors have the option to convert their notes into shares at any time before the maturity date by providing a written conversion notice. If no conversion notice is received, the company is obliged to repay the principal sum on the maturity date.
Strategic Importance
The capital raising underscores strong investor confidence in Tungsten Mining's exploration and development strategy, particularly concerning the Mt Mulgine Project. This project holds significant potential for the company, as it aims to become a major player in the global tungsten market through the development of low-cost tungsten concentrate production.
The successful capital raising enhances Tungsten Mining's financial position, enabling it to proceed with the acquisition and development of the Mt Mulgine Project. This could potentially lead to increased investor interest and a positive impact on the company's stock price. However, the discount on the conversion price may lead to some dilution of existing shares, which investors should consider.
Investor Reaction:
Analysts are likely to view this capital raising as a positive step for Tungsten Mining, reflecting strong support for its strategic initiatives. The discount on the conversion price might raise concerns about share dilution, but the overall sentiment is expected to remain optimistic given the project's potential.
Conclusion:
Investors should keep an eye on the progress of the Mt Mulgine Project and assess how the capital raising impacts Tungsten Mining's long-term growth prospects. The company's ability to execute its strategic plans will be crucial in maintaining investor confidence and driving future stock performance.