Launch of Underwritten $24.3M Equity Raising

True North Copper Limited (ASX: TNC) is pleased to announce a fully underwritten $24.3 million equity raising (Equity Raising) to fund TNC through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), strengthen its financial position and fund exploration to grow resources and reserves at Cloncurry and target new discoveries at its Mt Oxide Project in 2024.

The Equity Raising will comprise of:

• an institutional placement of approximately 135.2 million new fully paid ordinary shares (New Shares) utilising the Company’s available capacity under ASX Listing Rules 7.1 and 7.1A, to raise A$7.6 million (Placement); and
• a 1-for-2 pro rata accelerated non-renounceable entitlement offer of 298.2 million New Shares to raise $16.7 million (Entitlement Offer).

Up to approximately 433.4 million New Shares are to be issued under the Equity Raising, representing approximately 77% of the existing shares on issue.

The Equity Raising is being conducted pursuant to a transaction specific prospectus, released to the ASX today, 23 May 2024 (Prospectus).

New Shares issued under the Equity Raising will rank equally with the Company’s existing fully paid ordinary shares on issue.

Tembo Capital Holdings UK Limited (the Company’s largest shareholder) has committed to participate up to $6.0 million through the Institutional Entitlement Offer and Priority Sub-Underwriting of the Retail Entitlement Offer.

Nebari Natural Resources Credit Fund II, LP (the Company’s debt provider) have committed to sub-underwrite the Retail Entitlement Offer for up to $0.5 million (Sub-Underwriting Commitments).

True North Copper Executive Chairman Ian McAleese said:

“It is our goal to restart operations at Cloncurry to become Australia’s next copper producer and this Equity Raising will strengthen our balance sheet through to steady state production at the CCP. Backed by our binding offtake and toll milling agreements with Glencore, we are ready to transform our Cloncurry Project into a profitable mining operation. First copper concentrate sales from commercial mining at CPP is expected in 2H 2024 at a time when copper prices are at 10 year highs. Cash flow from mining will fund extensive exploration at both Mt Oxide and the Cloncurry district. We are grateful for the support from our new and existing Shareholders in this – in particular Tembo Capital and Nebari who have committed to sub-underwrite our Retail Entitlement Offer.

In addition to restarting Cloncurry, we have vast potential to grow resources and reserves for this project as well as further build our inventory at the Mt Oxide Project, with a +10km prospective trend we are keen to explore in addition to our Vero Resource which hosts a resource of nearly 16 million tonnes at 1.43% copper and 6.91 g/t silver total combined Measured, Indicated and Inferred resource.”

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