AMN - SOUTH AFRICA: Stonewall funds for TGME drilling

Stonewall Resources has raised $5 million from a share subscription agreement with a global investment house. This will enable the company to complete reserve drilling at the Theta Hill and Vaalhoek deposits of the TGME Gold Project in South Africa.

The ASX-listed company is raising $5 million from the global investment house on the following terms:

- Tranche 1 share placement of $2 million at an issue price of 1.1 cents per share within 30 days; and

- Tranche 2 share placement of $3 million is subject to shareholder approval and will be issued at a price equal to the 20 days VWAP (volume weighted average price) before the allotment.

The investor has agreed that all shares will be escrowed for 12 months from the completion date.

Stonewall aims to restart gold production at TGME at the earliest opportunity.

Managing director Rob Thomson said: “With this very favourable placement coupled with the new multi-million-ounce global resource, the company is well positioned to complete resource/reserve drilling for Theta Hill and other surrounding open-cut targets, complete feasibility studies and secure the required funding for the commencement of gold production.”

Stonewall’s exploration programs in South Africa will now be fully funded to complete the reserve drilling at Theta Hill and Vaalhoek.

The funds will also be allocated to environmental/ engineering studies.

A second resource upgrade is expected in coming months when drilling at the Theta Hill deposit is completed, adding to the recent overall 5.1 million ounce gold resource upgrade for the TGME gold project.

http://stonewallresources.com/