True North Copper (ASX: TNC) Raises $18 Million to Fund Mt Oxide and Copper Growth

True North Copper has secured firm commitments for an A$18 million placement and plans a capped A$2 million share purchase plan.

The copper developer will issue 48.65 million placement shares at A$0.37 each. The price represents a 14% discount to its last close. It is also 8.7% below the 15-day volume-weighted average price through August 12.

The funding addresses a defined acquisition obligation while extending exploration and technical programs into 2027. It also supports a pre-feasibility study at Cloncurry, giving the company two parallel project workstreams. However, part of the placement remains conditional on shareholder approval.

Placement Split Across Two Tranches

True North Copper upsized the placement from A$15 million following demand from institutional, professional and sophisticated investors.

The first tranche comprises 33.1 million new shares and will raise A$12.2 million. Settlement is scheduled for August 21, with the shares expected to be issued around August 24.

A second tranche will issue about 15.55 million shares to raise another A$5.8 million. That tranche requires shareholder approval at a general meeting anticipated in October.

Major shareholder Tembo Capital Holdings UK committed A$2 million to the second tranche. Non-Executive Chairman Paul Cronin committed A$500,000, with his participation also requiring shareholder approval.

Morgans Corporate and Petra Capital acted as joint lead managers and joint bookrunners.

Where the Capital Is Going

A key allocation is the final A$7.5 million deferred consideration payment to Perilya. That payment completes the deferred cash consideration linked to True North Copper’s Mt Oxide acquisition.

The remaining placement proceeds will support drilling, exploration and technical work across the company’s Queensland copper portfolio.

At Mt Oxide, drilling will continue at the Aquila discovery through the fourth quarter. Work will target extensions along strike and at depth while further defining higher-grade zones. Further drilling is planned after the 2027 wet season.

Funding will also support geological modelling, resource extension drilling and exploration across the broader Mt Oxide property.

Meanwhile, True North Copper plans to complete the Cloncurry Copper Project pre-feasibility study in late 2026. Associated work will assess a potential ore reserve and opportunities to optimise the project. Selected regional exploration programs will maintain the company’s longer-term discovery pipeline.

Shareholders Offered Matching Price

Eligible shareholders in Australia and New Zealand can apply for up to A$30,000 of new shares through the purchase plan. No brokerage or transaction costs will apply.

The offer uses the same A$0.37 issue price as the placement and is not underwritten. Proceeds are intended for working capital.

The record date was 7pm Sydney time on August 14. The offer is expected to open August 25 and close September 10. Results and share issuance are scheduled for September 17.

Near-term operational updates include further Aquila assays and Mt Oxide project news. The Cloncurry pre-feasibility study remains targeted for late in the fourth quarter of 2026.