Announcement PDF Sign up HERE to our Investor Hub ASX ANNOUNCEMENT 18 JULY 2024 ASX:TSO OTCQB:TSORF A$9.7 MILLION FUNDING SECURED TO ADVANCE GOLD EXPLORATION CAPITAL RAISING Tesoro Gold Limited (Tesoro or the Company) (ASX:TSO, OTCQB:TSORF) is pleased to announce that it has received binding commitments to raise approximately A$9.7 million (before costs) at A$0.03 per share (Placement) to advance the El Zorro Gold Project (El Zorro). Proceeds of the Placement will be applied to exploration drilling, project studies and regional target generation. HIGHLIGHTS • Binding commitments received for a Placement to raise approximately A$9.7 million. • Strong demand received from long term Australian, United Kingdom and European Union based specialist precious metals institutional and sophisticated investors including a commitment of A$1.2 million from strategic partner Gold Fields Limited (JSE:GFI, NYSE:GFI) (Gold Fields) (under second tranche and subject to Shareholder approval). • Funds are to be applied towards ongoing Resource growth of the existing 1.3 Moz Ternera Gold Deposit1 (Ternera), exploration drilling of high-priority gold targets proximal to Ternera, including recent discoveries at Drone hill and Ternera East, regional target generation and further technical and economic study advancement at El Zorro. Tesoro Managing Director, Zeff Reeves, commented: “We thank our existing shareholders for their continued support, including our strategic investment partner, Gold Fields. We also warmly welcome several new high-calibre long term Australian, United Kingdom and European Union based specialist precious metals institutions to our register, who recognise the inherent value of Tesoro and the El Zorro Gold Project. This additional funding will allow us to continue to advance and grow Ternera, undertake target generation and regional exploration drilling, and progress technical and economic study optimisation and more over the coming twelve months. “We continue to work closely with the Gold Fields technical team, who have provided valuable support since their initial investment in November 2022. Their ongoing commitment to Tesoro strongly validates our view that the El Zorro Gold Project has potential to become 1 For full details of the Ternera Deposit Mineral Resource Estimate (802 koz Indicated, 479 koz Inferred), refer to Tesoro ASX Announcement dated 9 March 2023. Tesoro confirms that it is not aware of any new information or data that materially affects the information included in those releases. All material assumptions and technical parameters underpinning that release continue to apply and has not materially changed. Level 48, 152-158 St Georges Terrace, Perth +61 8 6311 9160 info@tesorogold.com.au ASX ANNOUNCEMENT 18 JULY 2024 a significant asset, demanding further exploration and advancement to unlock its full value.” PLACEMENT The Placement comprises the issue of approximately 323.3 million new fully paid ordinary shares (Placement Shares) in the Company to professional and sophisticated investors at an issue price of A$0.03 per Placement Share (Offer Price). Proceeds of the Placement are approximately A$9.7 million (before costs), comprising: • Tranche 1: Approximately A$8.5 million via the issue of up to 283,333,334 Placement Shares, comprising of 160,375,263 Placement Shares under Listing Rule 7.1 and 122,958,071 under Listing Rule 7.1A. • Tranche 2: Approximately A$1.2 million via the issue of up to 40,000,000 Placement Shares to Corporate International Holdings BV, a wholly owned subsidiary of Gold Fields Limited, subject to obtaining shareholder approval at an Extraordinary General Meeting (EGM) to be held in September 2024. The investment via Gold Fields’ nominee will take their shareholding in the Company to approximately 17.52%. The Offer Price per Placement Share reflects a: • 6.3% discount to the last close price of A$0.0320 on 15 July 2024; • 10.9% discount to the 5-day volume-weighted average price of approx. A$0.0337; and • 7.9% discount to the 15-day volume-weighted average price of A$0.0326. USE OF FUNDS Funds raised will be applied towards: • ongoing Resource growth at Ternera; • drilling of high-priority gold targets proximal to Ternera, including new discoveries at Drone Hill and Ternera East; • advancing technical and economic studies at El Zorro; • ongoing district target generation and exploration • general administrative and working capital; and • costs associated with the Placement. LEAD MANAGER The Company engaged Unified Capital Partners Pty Ltd and Morgans Corporate Limited as Joint Lead Managers (Joint Lead Managers) and Tamesis Partners LLP (Tamesis) as CoManager to the Placement The Joint Lead Managers (or their nominee/s) will receive a 6% fee on all funds raised under the Placement. TESOROGOLD.COM.AU 2 ASX ANNOUNCEMENT 18 JULY 2024 INDICATIVE TIMETABLE An indicative timetable for the Placement is set out below. The Directors reserve the right to vary the dates , subject to compliance with applicable laws and the ASX Listing Rules. Event Announcement of Placement Trading Halt lifted Settlement of Placement Shares under Tranche 1 Issue Placement Shares under Tranche 1 Quotation of Placement Shares issued under Tranche 1 Date Thursday, 18 July 2024 Wednesday, 24 July 2024 Thursday, 25 July 2024 Friday, 26 July 2024 EGM to approve Tranche 2 Thursday, 12 September 2024 Settlement of Placement Shares under Tranche 2 Monday, 16 September 2024 Issue of Placement Shares Tuesday, 17 September 2024 Quotation of Placement Shares issued under Tranche 2 Wednesday, 18 September 2024 This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. Authorised by the Board of Tesoro Gold Limited. TESOROGOLD.COM.AU 3 ASX ANNOUNCEMENT 18 JULY 2024 For more information: Company: Zeff Reeves, Managing Director Tesoro Gold Limited info@tesorogold.com.au Table 1 - Constrained Ternera MRE. Au g/t Area Open Pit Resource Underground Resource Total Resources cut off Indicated Inferred Total Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz 0.30 22.5 1.10 795 10.0 1.18 379 32.5 1.13 1,175 1.50 0.1 2.64 7 1.2 2.64 100 1.3 2.64 107 22.6 1.11 802 11.2 1.34 479 33.7 1.18 1,282 The updated MRE has been constrained to a US$1,800/oz optimised pit shell, with the underground resource reported at a 1.50g/t Au cut-off. The underground resource is reported at a cut-off where gold mineralisation is consistently well-developed below the optimised pit shell. Indicated Inferred Total Au g/t cut off 2.00 Mt 2.6 Au g/t 3.75 Koz 317 Mt 2.0 Au g/t 3.71 Koz 241 Mt 4.7 Au g/t 3.73 Koz 558 1.00 7.2 2.25 523 5.6 2.24 400 12.8 2.24 923 0.50 16.3 1.39 727 12.8 1.37 561 29.1 1.38 1,288 0.30 23.2 1.09 815 19.4 1.03 645 42.6 1.07 1,459 Unconstrained Ternera MRE reported at various cut offs to the 200mRL. For full details of the Ternera Deposit Mineral Resource Estimate (802 koz Indicated, 479 koz Inferred), refer to Tesoro ASX Announcement dated 9 March 2023. TESOROGOLD.COM.AU 4 ASX ANNOUNCEMENT 18 JULY 2024 About Tesoro Future Performance Tesoro Gold Limited has discovered and defined the first Intrusive Related Gold System in Chile. The 1.5M oz Ternera discovery is in the Coastal Cordillera region of Chile. The Coastal Cordillera region is host to multiple world-class copper and gold mines, has well established infrastructure, service providers and an experienced mining workforce. Large areas of the Coastal Cordillera remain unexplored due to the unconsolidated nature of mining concession ownership, but Tesoro, via its in-country network and experience has been able secure rights to the districtscale El Zorro gold project in-line with the Company’s strategy. Tesoro’s 95% owned Chilean subsidiary owns 93.8% of the El Zorro Gold Project. This announcement may contain certain forwardlooking statements and opinions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forwardlooking statements or other forecast. Nothing contained in this announcement, nor any information made available to you is, or and shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Tesoro Gold. Competent Persons Statements The information in this report that relates to Mineral Resources is based on information compiled by Mr Lynn Widenbar, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Widenbar is acting as an independent consultant to Tesoro Gold Limited. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement on 9 March 2023. TESOROGOLD.COM.AU 5