Theta Gold Mines Secures $35M Loan, Approves Mining, Advances Construction
Theta Gold Mines secures a pivotal US$35 million loan facility and board approval to mine, marking significant progress in the development of its TGME Gold Mine Project in South Africa.
- US$35 million loan facility approved by South Africa's IDC
- Board approves decision to mine at TGME Gold Mine Project
- Pre-development plant works completed; bulk earthworks commenced
- US$4 million capital raise supports early construction activities
- Feasibility Study update underway incorporating 174,000 ounces of surface gold
Strategic Financing Secured
The June 2025 quarter saw Theta Gold Mines Limited (ASX – TGM) secure a US$35 million loan facility from the Industrial Development Corporation (IDC) of South Africa, a cornerstone achievement in the company’s project financing strategy. This funding approval not only underpins the TGME Gold Mine Project’s capital requirements but also acts as a catalyst to attract additional commercial lenders through ongoing syndication efforts led by specialist advisors.
Construction and Operational Progress
Theta Gold has completed critical pre-development plant construction works on schedule and within budget, including the dismantling of legacy infrastructure and installation of temporary electrical systems. With the site cleared and earthmoving equipment delivered, the company has commenced bulk earthworks and civil engineering, signaling a tangible transition from planning to execution.
Decision to Mine and Feasibility Study Update
The board’s formal approval of the decision to mine (DTM) the TGME Gold Mine Project marks a significant milestone, enabling the deployment of project build capital expenditure. Concurrently, Theta Gold is updating its Feasibility Study to reflect the current gold price environment, now exceeding US$3,000 per ounce, and to potentially include an additional 174,000 ounces of surface gold resources from tailings and rock dumps into the upfront mine schedule. The updated study is expected to be finalized in the third quarter of 2025, likely enhancing the project’s already attractive economics.
Capital Raise and Corporate Developments
Complementing the debt facility, Theta Gold completed a US$4 million capital raise through a private placement, earmarked to fund bulk earthworks, early civil works, and water management infrastructure. The company also issued shares to consultants in lieu of cash payments, reflecting prudent cash management. With a cash position of US$5.6 million at quarter-end, Theta Gold is positioned to sustain its development momentum.
Environmental and Social Governance Initiatives
In parallel with operational advances, Theta Gold is progressing its Environmental, Social, and Governance (ESG) commitments. This includes an ecological compensation program and a Social and Labour Plan (SLP) aligned with South African mining regulations, focusing on community engagement and sustainable development. The company’s renewed mining rights through 2038 further solidify its long-term operational framework.
Bottom Line?
With financing secured and mining approved, Theta Gold Mines is poised to accelerate its TGME project, but the market will watch closely for the updated feasibility study and commercial lender syndication outcomes.
Questions in the middle?
- How will the updated Feasibility Study impact project valuation and timelines?
- What are the prospects and timelines for securing commercial co-lenders alongside the IDC loan?
- How effectively will Theta Gold manage ESG commitments amid project scale-up?
