Tolu Minerals Limited

Announcement of Listing

The Directors of Tolu Minerals Limited ("Tolu", ASX:TOK) are pleased to announce the successful closing of the Offer and the admission of Tolu to the Official List of the ASX on 9 November 2023.


The securities of Tolu will commence quotation at 11h00 AEST on 10 November 2023. Tolu raised AUD $17,335,795 and has issued 34,671,590 new shares.

The strategic objectives of Tolu remain as previously stated, namely to accelerate the exploration of the Tolu projects being Tolukuma gold mine (“TGM”), the broader Tolukuma regional exploration and Mt Penck, enhancing the opportunity for Tolu to operate major resource development opportunities.

The history:

  • TGM has historically produced approximately 1 million oz Au at a very high recovered grade of circa 15 g/t Au.
  • TGM has historically produced very high recovery of silver at circa 50 g/t Ag.
  • These grades are considered very high in PNG.
  • Tolu has a combined approximately 1,800 km2 of highly prospective exploration licences surrounding the mining lease, ML 104 including the pending Ipi River application.
  • Tolu also has the highly prospective copper/gold Mt. Penck exploration licence on New Britain island.

The opportunity to leverage the formerly operating TGM enables Tolu to progress its exploration strategy favourably in comparison to greenfield exploration projects.

Significant recent advancements include:

Completion of the acquisition of Frontier’s PNG company and assets.

  • On 9 November Tolu completed the acquisition of 100% of the share capital from Lanthanein Resources Limited in Frontier Copper PNG Ltd, a company holding EL 2531.
  • This is a material acquisition by Tolu as it now means Tolu has an extensive exploration footprint in the Tolukuma region and critically, now has exploration rights to all the area immediately surrounding the TGM mining lease.
  • This is significant as Tolu is planning to test identified exploration targets that extend to the boundary of the TGM mining lease and into EL 2531.

Building of the Access Road and Other Major Initiatives

  • Tolu has entered into a binding Term Sheet with Tunnel Engineering (PNG) Ltd (the “Contractor”), a contractor with proven, significant PNG development experience, to complete the construction of the access road to TGM and exploration platforms for a fixed price of AUD 4million a significant portion (55%) of which will be paid for in equity at the Offer price, being 50 cents. This critical project will reduce the historical, expensive reliance on helicopter supply and enable further works, importantly including recommencement of exploration. The engagement of the contractor enormously de-risks this critical activity.
  • Tolu has agreed with the Contractor to grant first rights to undertake further works to recommission the existing hydroelectric power station, repair service roads as well as undertake high speed tunnelling on the twin dewatering drives and the Milihamba exploration drive towards the Southern boundary of the mining lease. The Milihamba drive opens up more of the highly prospective Southern portion of the mining lease, while the dewatering tunnel also provides key new exploration platforms in the Northern end of the TGM lease to depth below existing workings.
  • These works will significantly benefit the exploration process and assist in the opening up of exploration platforms and drives at a cost far below what was available through the historical helicopter serviced model.

Workforce

  • Tolu is advanced in discussions to secure certain key staff in support of its activities.
  • Tolu will keep the market informed of any significant appointments to the Tolu executive team.

Immediate Next Steps

  • Mobilise the Contractor and commence road construction.
  • Refurbish certain site infrastructure.
  • Refurbish the access to the underground mine.
  • Re-enter accessible workings in order to increase Mineral Resource confidence levels and undertake bulk sampling.
  • Refurbish a third of the hydroelectric power plant generating capacity.
  • Access the Milihamba Drive by dewatering from the top of the mine.
  • Commence targeted exploration from the Milihamba Drive.

These significant activities will support Tolu is seeking to deliver against its key objectives of upgrading the existing Mineral Resource Estimate as well as opening up exploration platforms to examine already identified targets both in extending the existing high grade epithermal Mineral Resource, but also in targeting new porphyry type deposits.


Click here for the full ASX Release

This article includes content from Tolu Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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