True North Copper Secures Funding for Mine Restart and Exploration

True North Copper Secures Funding for Mine Restart and Exploration

Placement Details and Funding Allocation

True North Copper Limited (ASX: TNC) announced the successful acquisition of approximately $15 million through a two-tranche placement. This includes about $10.7 million in cash and roughly $4.3 million in converted debt. The placement, attracting substantial interest from global institutional investors, signals confidence in the company’s strategic direction. The funds will be allocated to various initiatives, including:

  • Restarting operations at the Great Australia Mine in Queensland.
  • Conducting exploration and drilling for mine life extension at Cloncurry.
  • Executing further drilling and survey work at the Vero Resource for resource expansion.
  • Converting a short-term loan from Tembo, including accrued interest, into equity.
  • Partial repayment of a short-term working capital facility to Dyda Property Management.
  • Covering general working capital needs and costs associated with the placement.

Financial Strength and Operational Plans

The placement is expected to significantly bolster True North Copper’s balance sheet, providing the financial flexibility needed for the Great Australia Mine’s restart and other key operational activities. The aim is to enhance near-term cash flows through these efforts.

Additional Financing and Copper Sulphate Production

True North Copper has also signed a term sheet with a mine finance group for a potential US$28 million facility, subject to due diligence and definitive documentation. This further supports the company’s growth strategy. Meanwhile, copper sulphate production has seen an uptick in the December quarter, reaching a cashflow-positive status.

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