RTG Mining intends to raise approximately US$12 million in a private placement to Australian and international institutional and sophisticated investors with the aim of advancing its Philippines projects.
The TSX and ASX listed company says the net proceeds will be used to fund exploration and development of the Mabilo project and exploration of the Bunawan project as well as for working capital and general corporate purposes.
The private placement will be led internationally by BMO Capital Markets, together with a syndicate of agents including Tectonic Advisory Partners (acting through Ecoban Securities Corporation), Arlington Group Asset Management Ltd and Raymond James. It will be co-led in Australia by Hartleys Limited in association with Taylor Collison on a best efforts agency basis.
The company will also reserve the right to accept oversubscriptions up to a further US$3 million which includes a portion of non-brokered shares.
Completion of the private placement is subject to a number of conditions, including the completion of due diligence by the agents, the negotiation and execution of definitive agency agreements, satisfaction of any regulatory requirements, receipt of the approval of the Toronto Stock Exchange to list the securities on the TSX and the subsequent listing of the securities on both the TSX and the Australian Securities Exchange Limited (ASX).
The closing date for the private placement is scheduled to occur on or about July 22.
RTG is focused on developing the high grade copper/gold/magnetite Mabilo project and advancing exploration on the highly prospective Bunawan project, both in the Philippines, while also identifying major new projects which will allow the company to move quickly and safely to production.
RTG has an experienced management team, which was previously responsible for the development of the Masbate Gold Project in the Philippines through CGA Mining, and has B2Gold Corp as one of its major shareholders in the company.