Tembo Gold (TEM.V) has announced an equity offering marketed by a consortium of brokers led by Canaccord Genuity. Tembo hopes to raise C$3.5M to continue their exploration drill program at their 100% owned Tembo project in Tanzania.
This capital raise will be conducted at a price of C$0.40/share with ½ warrant attached with a strike price of C$0.60, valid for 3 years from the closing of the offering.
We are a bit disappointed with the offering price which is a 15.8% discount from the closing price the day before. We hoped the company would have been able to raise money at C$0.45, but the discount is higher than we anticipated. Nevertheless, this capital raise is necessary to continue to drill at their Tembo project in Tanzania which has yielded some interesting intersections over the past weeks.
Disclosure: Tembo Gold Corp. is a sponsoring company. Please see our disclaimer for current positions.