en.Wedoany.com Reported - Australian gold development company Theta Gold Mines Limited (ASX: TGM) announced on June 1, 2026, that it has completed an oversubscribed $125 million (approximately A$125 million) senior secured bond issuance, with the proceeds to be used to advance its TGME gold mine project in South Africa. The bonds were arranged by Pareto Securities, and this financing marks the completion of the company's debt financing process, allowing remaining construction and development activities to proceed.
The actual amount raised from the bond issuance was $90 million, equivalent to approximately A$125 million at the USD/AUD exchange rate. The bonds carry a coupon rate of 12.75% and were issued at 95.9% of face value. The bonds have a four-year term, with settlement expected in mid-June 2026, and will be listed on the Nordic ABM market within nine months. The bonds have no mandatory hedging or royalty provisions, and no principal repayment is required for the first 30 months after issuance, after which they will be repaid in quarterly installments of $7.5 million until maturity. The net proceeds will be used for mine development, processing plant construction, tailings and water treatment infrastructure, equipment procurement, and power infrastructure upgrades.
Headquartered in Sydney, Australia, Theta Gold Mines was founded in 2008, formerly known as Stonewall Resources Limited, and changed to its current name in December 2018. It is a gold company focused on gold exploration and development in South Africa. Its flagship project, the TGME (Transvaal Gold Mining Estates) gold project, is located near the historic gold mining town of Pilgrim's Rest in Mpumalanga Province, South Africa. The project covers an area of approximately 620 square kilometers, about 370 kilometers northeast of Johannesburg, on the eastern side of the Bushveld Complex, a region that historically contributed 40% to 50% of global gold production. The company holds a 74% interest in the TGME project, with the remaining interest held by Black Economic Empowerment entities, including traditional landowner trusts and employee trusts.
The TGME project has JORC-compliant gold resources of 6.1 million ounces, with a mineral resource of 45.84 million tonnes at a grade of 4.17 g/t. According to the revised definitive feasibility study released in February 2026, the mine has a life of 13.1 years, a net present value of $689 million, free cash flow of $1.4 billion, an internal rate of return of 77%, and a payback period of 29 months. Construction is progressing on budget, with the processing plant commissioning targeted for completion by the end of 2026, and first gold pour expected in the first quarter of 2027. The TGME project encompasses 43 historical mines, with the first phase of mining focusing on four core areas: Beta, Rietfontein, CDM, and Frankfort, all within 40 kilometers of the central processing plant. Theta Gold Mines' Executive Chairman, Bill Guy, has over 30 years of experience in the global resource development industry and has served as Managing Director and CEO of several mining companies.
According to Statistics South Africa, gold exploration activity in South Africa has declined by nearly 90% since the 1990s, with mineral exploration spending falling from $900 million in 2006 to just $43 million in 2025, and annual gold production has dropped from a peak of 1,000 tonnes in 1970 to approximately 90 tonnes per year currently. Against this backdrop, the TGME project has become one of the few gold development projects in South Africa in recent years to secure large-scale international financing and enter the construction phase. The continued progress of this project is expected to inject new production capacity into the recovery of South Africa's gold mining industry.
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