Tolu Minerals has emerged from a trading halt with a $60.5 million institutional placement.
The company’s shares were paused from trading on the ASX over October 7 and 8. It later announced firm commitments from a range of institutional investors who had agreed to take on just over 50.4 million new ordinary shares at a price of $1.20 per share.
The single tranche placement received strong support from both domestic investors in Australia, and internationally-based institutions. The company said the funds would be used to accelerate the development of the Tolukuma gold mine in Central Province of Papua New Guinea.
In particular, the placement will fund further resource definition and exploration, refurbishment of existing gold processing plant onsite, mine drives and operational readiness preparations, and technical services and logistics.
The costs associated with the placement and capital raising will also be accounted for within the $60.5 million.
Designated managing director and chief executive officer Chris Mueller said the strong support reflected significant confidence in the company’s strategic direction and growth potential.
“It is extremely pleasing to see the strong level of support from both existing and new investors,” he said.
“The funds raised will allow us to continue to accelerate our stated exploration strategy with the clear growth target of near mine mineral resource expansion.”
The company will also look to expand its drilling program around its high-impact exploration target, with 15,000m of drilling planned between now and June 30 next year.
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