True North Copper Secures A$50.3M in Equity Raise for Queensland Exploration

Australian mining company True North Copper has successfully secured A$50.3 million ($32.7 million) through a fully underwritten conditional placement, subject to shareholder approval. The placement involves issuing approximately 10.06 billion new shares at A$0.005 each.

This capital injection is a significant step in True North's revised business strategy, which prioritizes exploration and evaluation activities, particularly at the Cloncurry Copper Project and Mt Oxide Project in Queensland. The company plans to commence reverse circulation (RC) drilling at Cloncurry in the first quarter of 2025 (Q1 2025) and at Mt Oxide as conditions permit.

The equity raise will support True North's strategic shift towards exploration and evaluation, aiming to unlock the potential of its Queensland-based projects. The recapitalization process includes extinguishing all company debt, restructuring key agreements, and providing funding for a revised exploration and resource definition drilling strategy. True North also plans to offer an additional A$5 million share purchase plan to eligible shareholders at the same offer price.

The placement has garnered significant support from institutional and sophisticated investors, including the company's largest shareholders and processing partner Glencore, which will become a 9.9% shareholder post-recapitalization.

The recapitalization will settle secured creditor debts of approximately A$32.3 million owed to Nebari, which has agreed to a debt-to-equity conversion and a six-month voluntary escrow on these shares. Their unsecured creditors will receive partial repayment in cash and shares. The company's off-take and tolling agreements, especially with Glencore, will be redefined.

True North Managing Director Bevan Jones expressed enthusiasm about the successful placement, stating, "The successful completion of the fully underwritten A$50.3 million conditional placement to recapitalize True North is a great outcome and a testament to the strength of the company's outlook and highly prospective portfolio of copper assets."

Jones further emphasized the company's renewed focus on exploration and optimization of its existing lease package. He highlighted the recent completion of extensive surface mapping and a successful GIS IP survey at Mt Oxide.

True North Copper's successful equity raise marks a pivotal moment in its strategic journey. With a strengthened balance sheet and a clear focus on exploration, the company is well-positioned to unlock the value of its Queensland-based projects and deliver long-term shareholder value.

True North Copper, a mining company headquartered in Cairns, is focused on two primary projects: the Cloncurry Project, located in Cloncurry, north-west Queensland, and the Mt Oxide Project, situated approximately 1.5 hours from Mount Isa, also in north-west Queensland. These projects are centered around the extraction of copper, cobalt, and other critical minerals.