The TNT Mines Ltd (ASX: TNT) share price is soaring today after the company released news of an acquisition.
TNT will pay $11 million in cash for the Mt Ida gold/copper project. To purchase the project, it has raised $15 million through binding loan commitments.
Right now, the TNT share price is 21 cents, 20.5% higher than its previous close.
Let's take a closer look at TNT's new project.
New acquisition
The TNT Mines share price is surging today after the company announced it will be acquiring Mt Ida Gold Pty Ltd.
Mt Ida Gold is a subsidiary of Ora Banda Mining Ltd (ASX: OBM) and the holder of the Mt Ida gold/copper project.
The project is made up of 19 tenements and spans 155 square kilometres in Western Australia's goldfields.
The company believes the project will come with an annual expenditure of $340,000.
A condition of the sale was that TNT Mines must raise at least $12 million, which it already has.
The company has raised $15 million through the sale of loan commitments to institutional investors. The loans will convert into fully paid ordinary shares at a conversion price of 15 cents per share, together with free attaching options on a 1:4 basis exercisable at 25 cents apiece, expiring 3 years from the date of issue.
The Mt Ida project has total resources of:
- 318,000 tones at 13.8 grams of gold per tonne for 141,000 ounces
And indicated resources of:
- 136,000 tones at 18.6 grams of gold per tonne for 81,000 ounces with 182,000 tonnes at 10.3 grams of gold per tonne for 60,000 ounces in inferred category
Commentary from management
TNT's chair, Alex Hewlett, commented on the acquisition driving the company's share price today, saying:
This proposed transaction and capital raise will be transformative for TNT. It will bring in a project with a very high-quality high-grade gold resource and a mineral field with multiple advanced gold, copper, nickel, and lithium targets. The quality of the capital raise and significant support from global institutional investors further supports our view of the project and our team's ability to generate returns for our shareholders.
TNT Mines share price snapshot
Despite today's gains, the TNT share price is still 24% lower than it was at the start of 2021. However, it is 13% higher than it was this time last year.
