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Tietto Minerals inks placement deal for Abujar gold project in Côte d’Ivoire

Tietto Minerals has secured a share placement deal with Chijin International (HK) Limited, a subsidiary of Shanghai-listed Chifeng Jilong Gold Mining Co Ltd (Chifeng Gold) to fast-track studies and expanded exploration at its flagship Abujar gold project in Côte d’Ivoire.

The agreement will see Tietto the West African explorer issue 85 million new shares at $0.58 per ordinary share to Chijin International (HK) Limited, a subsidiary of Shanghai-listed Chifeng Jilong Gold Mining Co Ltd (Chifeng Gold). The funds will be used to accelerate studies of the potential heap leach project at Abujar and expanded exploration drilling with a growing fleet of eight diamond rigs.

“This placement means Tietto is secure in its pathway to first gold production at the Abujar gold project as we look forward to delivering the updated life-of-mine production plan in Q3 CY22,” said Tietto managing director Dr Caigen Wang.

Abujar Gold Project

The Abujar Gold Project is located approximately 30km from the major regional city of Daloa in central western Côte D’Ivoire. The open-pit gold mine is projected to become one of the largest gold mines in Côte d’Ivoire, with an estimated production rate of 260,000 ounces gold in the first year and 1.2Moz over the first six years.

In recent months, Tietto has been reporting a steady stream of high-grade gold results from ongoing infill drilling at the AG Core prospect within the project. This area is expected to be one of the first to be mined during the initial stages of gold production later this year.

The placement price of $0.58 per share represents an approximate 15% premium to the 20-day volume weighted average price (VWAP) of Tietto’s shares as at 7 September. Upon completion of the placement, Chifeng Gold will, together with its associates, hold a 7.87% interest in Tietto.

The placement is expected to be completed in one tranche on 16 September, conditional upon Chifeng Gold obtaining any regulatory approvals necessary to carry out the placement. Tietto has also granted Chifeng Gold the right to appoint a non-executive director to its board within 90 days of completion of the placement.

 

 

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