Tembo Gold (TEM.V) announced they closed the final tranche of their capital raise. The company raised C$4.02M by issuing 8.04M shares at C$0.50. As this financing happened at a premium to the market price – the company traded mostly under half a dollar during the financing – we consider this to be an encouraging sign although the share price currently slipped to an all-time low of C$0.395.
As the current enterprise value will be less than C$15M, we feel the market is clearly underestimating the potential of Tembo’s project in Tanzania.
Disclosure: The author holds a long position in Tembo Gold Corp. Please see our disclaimer for current positions.