Company statement
Tucano Gold Inc. (“Tucano” or the “Company”) is pleased to announce that it has signed a term sheet with a large private equity group for a C$45.9 million investment into Tucano. This transaction will allow the Company to successfully restart operations in Q1’25 and provides the capital to fast-track production growth.
The financing is priced at C$0.70 per share along with a half warrant, with each full warrant exercisable at $1.00 per share for two years. The financing will be completed with a first tranche of C$18.9 million followed by a second tranche within 120 days from closing of C$27.0 million. This investment, once completed, will represent ~55% ownership in Tucano on a fully diluted basis.
Since the acquisition of Mina Tucano in October 2023, Tucano has raised approximately C$14 million in equity priced at C$0.50 and C$0.80 per share. Shares previously issued at $0.80 will be re-priced to C$0.70 per share.
Tucano CEO, Jeremy Gray comments, “This is a pivotal moment in Tucano Gold’s young history. This cornerstone investment in Tucano will allow for the near-term production restart at Mina Tucano in an exceptionally strong gold price environment along with the acceleration of several capital initiatives identified to increase resources and production levels.”
Subject to successful completion of due diligence and other conditions precedent customary to a transaction of this nature, we expect closing of the first tranche of C$18.9 million to occur by mid-January 2025.
On behalf of the Board, we would like to thank our shareholders, management, staff and suppliers for their support over the last 12 months and look forward to an exciting 2025.
Jeremy Gray | CEO
Jeremy.Gray@TucanoGold.com
Charles Chebry | President
Charles.Chebry@TucanoGold.com
Max Beck | Head of IR
Max.Beck@TucanoGold.com
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