Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Tesoro Gold Raises AU$40 Million to Advance El Zorro Gold Project in Chile
Highlights
Tesoro Gold Secures AU$40 Million in Funding
Tesoro Gold Limited (ASX: TSO) confirmed on 29 October 2026 that it had secured firm commitments to raise approximately AU$40 million before costs through a two-tranche placement. The funding aims to accelerate resource growth and advance development activities at its El Zorro Gold Project in Chile. The company's shares traded at a current market price (CMP) of AU$0.770, representing a decline of approximately 4.93%.
Share Placement Details and Pricing
The placement involves approximately 54.8 million new fully paid ordinary shares at an issue price of AU$0.73 each. The first tranche is expected to raise AU$32.8 million through the issue of up to 44.9 million shares under the company's existing placement capacity.
The second tranche is expected to raise AU$7.2 million through approximately 9.9 million shares, subject to shareholder approval at an Extraordinary General Meeting expected in December 2026.
The issue price represents a 9.9% discount to the closing share price of AU$0.81 on 27 October 2026. It also represents discounts of 14.6% and 18.4% to the five-day and ten-day volume-weighted average share prices, respectively.
Funding to Support Development and Exploration
Tesoro Gold plans to use the proceeds to advance engineering, permitting and project-readiness activities at the Ternera deposit. The funding will also support completion of the Definitive Feasibility Study (DFS), which remains on track for delivery by the end of 2026.
Additional funds will be directed towards drilling to expand the existing Ternera Mineral Resource and exploring new targets across the wider El Zorro district. A portion of the funds will cover the company's routine operating costs and expenses associated with completing the share placement.
Tesoro Gold Moves to Increase El Zorro Ownership
Alongside the capital raising, Tesoro entered into a binding term sheet with Inversiones Marlin Limitada to acquire its remaining 5% interest in Tesoro Mining Chile SpA. The acquisition consideration comprises 11,682,850 new fully paid ordinary shares in Tesoro Gold.
Following completion, Tesoro's ownership of the subsidiary will increase from 95% to 100%, taking its effective interest in the El Zorro Gold Project to 95.4%. Completion of the deal depends on shareholder consent and the fulfilment of the remaining standard requirements.
Outlook for Tesoro Gold
Investors can monitor the expected settlement of the first tranche on 4 November 2026 and the commencement of trading in those shares on 5 November 2026. The shareholder meeting and proposed second tranche are expected in December 2026.
Progress on the DFS, permitting and exploration programmes will also be important as Tesoro advances its Chilean gold project. The capital raising provides additional funding for these activities, although future outcomes remain subject to project, regulatory and market risks.
Note- All data presented is based on information available at the time of writing.
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