Tesoro Gold Limited is an ASX-listed exploration company focused on the discovery and development of gold resources in Chile. Through its Chilean subsidiary, the company controls a dominant position in the underexplored Coastal Cordillera region via the El Zorro Gold Project. Tesoro has identified and defined the first Intrusive Related Gold System in Chile, with a resource of 1.3 million ounces already delineated at the Ternera deposit. Leveraging its local expertise and strong technical partnerships, Tesoro aims to unlock the broader regional potential of its vast landholding.
Capital Raise and Strategic Investor Support
Tesoro Gold has announced it has secured firm commitments for an institutional placement that will raise approximately A$11.1 million before costs. Shares were issued at a price of $0.024 each, representing a 14.3% discount to the last traded price and an 18% discount to the 15-day VWAP. This pricing strategy reflects the company’s intent to ensure wide participation and maintain strong shareholder backing.
The placement attracted significant interest from domestic and international institutional investors, highlighting confidence in the El Zorro Project’s future. Strategic partner Gold Fields Limited committed A$1.75 million to the placement via its subsidiary, Corporate International Holdings BV. This continued investment will maintain Gold Fields’ 17.14% equity position in Tesoro, a clear endorsement of the project’s geological and development potential. The funds from Gold Fields will primarily support regional exploration beyond the Ternera deposit.
The placement was split into two tranches. Tranche 1 raised approximately A$9.32 million under Tesoro’s existing placement capacity. Tranche 2, contingent on shareholder approval, is expected to raise the remaining A$1.75 million. An Extraordinary General Meeting is scheduled for June 2025 to seek approval for this tranche, after which shares will be issued to Gold Fields. Joint Lead Managers for the placement were Unified Capital Partners Pty Ltd and Morgans Corporate Limited, with Tamesis Partners LLP acting as Co-Manager.
Advancing El Zorro: Project Funding and Exploration Goals
Funds raised from the placement will be allocated to several key initiatives aimed at advancing the El Zorro Gold Project. These include ongoing growth drilling at the Ternera deposit to expand the existing resources, as well as exploration and drilling of high-priority targets across the broader El Zorro district. The capital will also support the completion of a new Mineral Resource Estimate and an updated Scoping Study, alongside advanced metallurgical testing to refine the project’s economic parameters. Additionally, funds will be used to finalise the permitting process required for project development, and to cover general working capital and expenses related to the capital raising.
This funding milestone ensures that all immediate technical and regulatory activities are fully financed over the next 12 months. Managing Director Zeff Reeves noted that the capital raise allows Tesoro to move aggressively forward with both resource expansion and broader exploration efforts. Collaboration with Gold Fields’ technical team since their initial investment in 2022 has strengthened confidence in the broader district’s untapped potential.
El Zorro’s flagship Ternera deposit currently hosts a total Mineral Resource of 1.28 million ounces, split between 802,000 ounces in the Indicated category and 479,000 ounces in the Inferred category. The new funding will enable updates to this estimate and support infill drilling to potentially upgrade resource confidence. Tesoro is also focused on unlocking additional discoveries in the surrounding area, leveraging both modern exploration techniques and regional expertise.
Mineral Resource Overview
The most recent constrained Mineral Resource Estimate for Ternera, based on a US$1,800/oz gold price, includes 33.7 million tonnes at an average grade of 1.18 grams per tonne for a total of 1.28 million ounces. This comprises 22.6 million tonnes at 1.11 g/t gold in the Indicated category and 11.2 million tonnes at 1.34 g/t in the Inferred category. At higher cut-off grades, the project demonstrates strong grade potential. For example, at a 2.00 g/t cut-off, the resource stands at 4.7 million tonnes grading 3.73 g/t gold, containing 558,000 ounces. This highlights the potential for both open pit and underground mining strategies as technical studies continue. The company plans to utilise the placement proceeds to generate a new MRE that reflects drilling completed since the March 2023 resource update. Advanced metallurgical work and scoping studies are also underway to determine optimal extraction methods and project economics. The El Zorro permitting process, which includes environmental approvals and regulatory compliance, is also now fully funded.
Following the placement, the company will focus on accelerating drilling and exploration programs. Settlement of Tranche 1 shares is scheduled for 29 April 2025, with shares expected to be issued the following day. Shareholder approval for Tranche 2 is anticipated in June 2025, after which Gold Fields will receive their allocated shares. This capital raise is expected to transform Tesoro’s project pipeline, supporting its transition from explorer to potential developer. The company continues to prioritise technical excellence and stakeholder collaboration as it advances El Zorro towards potential production readiness. With a strong financial foundation and the backing of major institutional investors, Tesoro is well positioned to deliver key project milestones throughout 2025 and beyond.