Oct. 24 at 2:17 AM
$TGB Wisdom of the Secondary ... on Oct 15, 2025, raising US
$170.1 million via 42 million shares at
$4.05:
With Q1 2025 debt-to-equity ~1.6, leverage at 3.5x-4.0x EBITDA per Fitch, the proceeds target the US
$110 million revolving facility, cutting interest costs (7-8%) and freeing cash for Florence ramp-up - deleveraging avoids covenant risks during high rates, enhancing financial health.
Announced alongside the transformational Florence wellfield start (90%+ complete, Q4 2025 cathode production), the low-cost project (~85M lbs/year at <
$1.10/lb C1).
Funds buffer ramp-up needs and also advance Yellowhead (32-year life, CA
$2.7B NPV8%, 22% IRR at $ 4 /lb copper), aiding partnerships.
14% dilution caused a 5-6% share dip, but at premium EV/EBITDA (6x vs. peers' 5-7x) in a copper bull, it's less costly than debt hikes or asset sales.
Overall, it's wise prioritizing balance sheet and flexibility at a critical transformational time and this will not be lost on potential suitors and partners.
