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TTAU - Tectonic Gold News Story

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Last Trade - 01/03/21

Basic Materials
Micro Cap
Market Cap £8.89m
Enterprise Value £9.07m
Revenue £219k
Position in Universe 1603rd / 1807

Tectonic Gold Plc: Equity fundraising to fund drilling campaign

Wed 9th September, 2020 7:00am
9 September 2020


(“Tectonic Gold” or the “Company”)

Equity fundraising to fund drilling campaign

Tectonic Gold plc (TDIM: TTAU.PL) is pleased to announce the completion of a
capital raise to fund follow up drilling at the Company’s Specimen Hill gold
project in Queensland. Australia. The raise was managed by VSA Capital and
supported by existing shareholders and new high net worth investors.
* £402,800 raised at 0.275p per share to fund ten-hole drilling program in
October 2020
* Attaching one-for-one “Drill Warrants” at 0.7p
* Program targeting extensions identified by the successful 2019 drilling
campaign (intersections up to 35g.t Au) at Specimen Hill
* New discovery “Southern Copper” (surface samples up to 16% Cu and 9g.t
* Rio Tinto Plc acquired neighbouring tenement in March 2020
* Pure play Australian gold focus following sale of Diamond and Mineral Sands
* Directors taking 100% of accrued remuneration in options
The capital raise has been undertaken by way of a subscription, issuing
146,472,721 shares at a price of 0.275p (the “Subscription Shares”) to
raise gross proceeds of £402,800.  Application will be made for the
Subscription Shares to be admitted to trading on the AQSE Growth Market and
this is expected to occur on 16 September 2020.  Following Admission,
Tectonic will have a total of 844,035,467 shares in issue.

The holders of each Subscription Share will receive a warrant on a one-for-one
basis whereby each warrant will entitle the holder to subscribe for a new
Ordinary share at 0.7p per share at any time prior to the expiry of 30 days
after the Company publishes the results of its drilling programme (the
“Drill Warrants”). The Drill Warrants, will be non transferable.

The Company will execute a ten-hole drilling campaign in October to follow up
on the successful 2019 drilling program. Every hole in the 2019 program
intersected gold mineralisation, confirming the Company’s targeting
methodology. From this, 2,700m of core was analysed in order to understand the
Specimen Hill gold system in detail. In conjunction with independent experts
and CODES, the Centre for Ore Deposit and Earth Sciences, Australia’s
leading exploration research organisation, results from the 2019 program were
analysed to develop a follow up drilling program targeting the high grade
feeder zones for the Specimen Hill system. In addition to this program the
company will drill two initial test holes at Mt Cassidy and the new Southern
Copper discovery.

Following bush fires last summer clearing the vegetation south of Specimen
Hill for the first time in generations, the Tectonic field team identified
high-grade copper gold mineralisation (16% Cu and 9g.t Au) at surface,
adjacent to the Specimen Hill core project area. The high copper grade
discovery is timely as Rio Tinto Plc, secured a large tenement directly
adjacent to Tectonic in March 2020. Rio follows gold majors Newcrest,
Evolution and Anglo Gold into the region, confirming its continued
prospectively for world class gold and copper deposits.

Tectonic plans two initial holes into the Mt Cassidy discovery to the north of
Specimen Hill in the October program. Mt Cassidy lies along the same structure
as Mt Morgan and has been confirmed as a lookalike with the same age and
mineralisation style. Mt Morgan is Australia’s most famous historic mine and
produced over 8M oz gold and 387,000 tons of copper. Mt Cassidy was identified
by Tectonic utilising advanced geophysical and geochemical testing to map the
system under cover. Samples of +30g.t Au have been assayed, making this a very
promising follow up project behind Specimen Hill.

The objective of the 2020 campaign is to progress the project pipeline further
towards collaboration discussions with one of the large neighbouring mining
companies. The corporate objective is to repeat the success of other
Australian explorer/developers such as Greatland Gold (AIM:GGP – 75x in 3
years) and Gold Road (ASX:GOR $1.4bn Mkt Cap.)

Earlier in the year Tectonic completed the divestment to Kazera Global
(AIM:KZG) of its non-core Diamond and Mineral Sands assets to focus on
Australian Gold. The Company has retained a non-diluting 10% interest and is
pleased with the progress Kazera has made bringing the diamond project into
production. The Company will selectively divest further non-core holdings to
provide additional funding for gold exploration.

The Company’s directors and executive have elected to forgo cash payment of
fees and will be taking all accrued remuneration in options. 65.5 million
options with a strike price of 0.275p and having a notional face value of
£180,000 will be issued. The options will only vest after the share price has
remained above 1p for 30 consecutive days.

About Tectonic Gold:

Tectonic Gold is a specialist gold exploration company, focused on the
identification and delineation of large-scale, multimillion-ounce Intrusion
Related Gold System (“IRGS”) assets. Tectonic Gold holds a number of gold
discoveries in Eastern Australia, a prolific gold region that is home to
Australia’s largest gold production companies including Newcrest Mining and
Evolution Mining.

Mr. Brett Boynton, Managing Director – Tectonic Gold Plc

“We are very encouraged by the market response to Australian gold
exploration over the last six months and with our well-supported raise
completed we are looking forward to getting back into the field. The bush
fires last summer and restricted travel due to COVID has been frustrating for
us as we have seen so many of our peers charging ahead. The silver lining to
this has been a new high-grade discovery at Southern Copper and seeing one of
the world’s largest copper porphyry miners, Rio Tinto, move in right
next-door. We know when the big guys arrive that a region is maturing and for
pioneers like us, the opportunities really open up.

I am also very pleased to have my fellow Directors electing to take their
accrued remuneration in options showing that we are all fully aligned with
shareholders. Tectonic and Signature Gold before it have been quietly and
methodically working these assets for over ten years. We have had significant
support from the Australian Government over this time developing and testing
exploration capabilities. We have made steady progress each year and are now
very excited to have what we hope will be a transformational campaign season
funded and ready to go.  We look forward to updating the market on progress
later in the month”.

The Directors of the Company accept responsibility for the contents of this

For further information, please contact:

 Tectonic Gold plc Brett Boynton Sam Quinn www.tectonicgold.com @tectonic_gold                                                               +61 2 9241 7665 
 Financial Adviser, Corporate Adviser and Broker  VSA Capital Limited Andrew Raca – Corporate Finance Andrew Monk – Corporate Broking       +44 20 3005 5004 


The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to be in the
public domain.

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