Congratulations to Gascoyne Resources Ltd on securing a $50m Funding Package to recapitalise the Company and advance exploration activities. The Funding Package comprises a $26.3m Equity Raising, a $21.3m investment from Tembo Capital, and a $2.5m unsecured loan from Delphi.

The Equity Raise component was strongly supported by Gascoyne’s existing shareholders, including largest shareholder, Delphi, who committed up to $5.8m in the Equity Raise.

Tembo Capital is a specialist resource-focused private equity fund, with a successful track record of global investments. Tembo will invest $15.0m through a secured loan that will mandatorily convert into Gascoyne shares. Tembo will also invest $6.3m through a secured loan that will mandatorily convert into a royalty over certain Gascoyne tenements.

The proceeds will be used to support exploration activities at Gascoyne’s recently discovered high-grade Never Never deposit, and for care & maintenance costs for Dalgaranga while the Company develops an optimised and higher-grade mine plan.

Sternship is pleased to have acted as financial adviser to the Company on the Funding Package. Ashanti Capital and Canaccord Genuity Australia acted as JLMs on the A$26.3m equity raising component.
ASX: GCY Announcement 1 Mar 23