RTG Mining raises US$34M to re-develop Panguna mine

PHOTO: Philip Miriori’s Me’ekamui group has entered into a joint venture with RTG mining. (ABC News: Eric Tlozek)

RTG Mining

The Board of RTG Mining Inc. is pleased to announce that the Company has received commitments to raise approximately US$34 million in a private placement to Australian and international institutional and sophisticated investors.

Hartleys Limited, together with Trump Securities LLC, acted as Joint Lead Managers to the Private Placement.

The Private Placement was oversubscribed, reflecting the strong institutional interest in RTG’s proposal with a landowner lead consortium to secure an exploration licence at the high tonnage copper-gold Panguna Project in Bougainville PNG and the development of the high grade copper/gold/magnetite Mabilo Project in the Philippines.

The Private Placement will result in the issue of approximately 311 million Chess Depository Instruments (“Securities”) to be listed on the ASX at an issue price of A$0.14 per Security, representing a 12.5% discount to RTG’s last closing price on the ASX of A$0.16.

Net proceeds of the Private Placement will be used:

• to advance the interests of RTG in the proposal to secure a role as the development partner with the landowner consortium led by the Special Mining Lease Osikaiyang Landowners Association (“SMLOLA”), at the old Panguna Mine in Bougainville;
• to progress the arbitration process to con rm the 100% interest of Mt. Labo Exploration and Development Corporation in the Mabilo Project in the Philippines and consider additional drilling at the site;
• to pursue new potential business development opportunities; and
• for working capital and general corporate purposes.
  

Commenting on the success of the Private Placement, RTG’s President & CEO Justine Magee said:

“We are extremely pleased with the strong support that RTG has received for the Private Placement from a number of new high quality international institutions, as well as from our existing shareholder base.

Following completion of the Placement, RTG will be in a strong financial position with cash and liquid assets of circa US$33.5 million net of fees to brokers, leaving RTG well-funded to progress various business development opportunities and continue to seek to build a social licence to sustainably redevelop the Panguna Project in Bougainville.”