Tectonic Gold Plc Equity fundraising to fund drilling campaign

 
TIDMTTAU 
 
9 September 2020 
 
                               TECTONIC GOLD PLC 
 
                      ("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. 
 
  * GBP402,800 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 Au) 
  * Rio Tinto Plc acquired neighbouring tenement in March 2020 
  * Pure play Australian gold focus following sale of Diamond and Mineral Sands 
    projects 
  * 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 GBP402,800.  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 GBP 
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 
announcement. 
 
For further information, please contact: 
 
Tectonic Gold plc                                             +61 2 9241 7665 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
Financial Adviser, Corporate Adviser                         +44 20 3005 5004 
and Broker 
VSA Capital Limited 
Andrew Raca - Corporate Finance 
Andrew Monk - Corporate Broking 
 
                                     Ends 
 
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. 
 
 
 
END
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