Highlights

  • Tesoro Gold raises A$40 million at A$0.73 per share in two tranches to fund the El Zorro definitive feasibility study due by year-end 2026.
  • The Ternera deposit hosts a mineral resource of 1.82 million ounces and a maiden ore reserve of 1.28 million ounces reported in September 2026.
  • Alongside the placement, a binding term sheet acquires the remaining 5% free-carried interest in the Chilean subsidiary for about 11.7 million shares.
  • A December shareholder meeting is required for the second placement tranche and the Marlin acquisition shares, with settlement of the first tranche on 4 November.

Tesoro Gold has secured firm commitments for a A$40 million placement to carry its El Zorro gold project in Chile through the final stages of study work. About 54.8 million new shares of the company (ASX:TSO) will be issued at A$0.73 each, a 9.9% discount to the last close before the announcement.

Two Tranches

The placement is split into two parts. The first tranche of about A$32.8 million and up to 44.9 million shares falls within Tesoro's existing placement capacity under ASX Listing Rules 7.1 and 7.1A, with settlement scheduled for 4 November 2026. The second tranche of about A$7.2 million and 9.9 million shares requires shareholder approval at an extraordinary general meeting expected in December. If that approval is not obtained, the company would receive only the first tranche — slightly over four-fifths of the planned total.

What the Money Is For

The funds are earmarked for engineering, permitting and project-readiness work at the Ternera deposit, completion of the definitive feasibility study, and drilling aimed at expanding the resource and testing targets elsewhere in the district. The definitive feasibility study is due by the end of 2026, with a final investment decision the company's stated aim after that. Managing director Zeff Reeves said the raising puts the company "in a strong position to complete the DFS" and sees "considerable opportunity to add further gold ounces."

Ternera Deposit

Ternera is the main deposit within El Zorro and hosts a mineral resource of 1.82 million ounces of gold. A maiden ore reserve of 1.28 million ounces was reported in September 2026. The tonnage and grade behind those figures were not included in the source reviewed for this article and should be confirmed against the company's own disclosures. The reserve is significant as it is the basis on which the feasibility study will assess whether a mine can be financed and built.

Tidying Up Ownership

Alongside the raising, Tesoro has signed a binding term sheet with Inversiones Marlin to acquire the remaining 5% free-carried interest in Tesoro Mining Chile, the local company holding the project, lifting Tesoro's effective ownership to 95.4%. Consideration is about 11.7 million Tesoro shares, half subject to six months of voluntary escrow. The issue requires shareholder approval at the December meeting.

Uncertainties and Next Steps

A feasibility study, even a positive one, does not guarantee development. Tesoro will still need permits, project finance and a board decision to proceed. Gold price assumptions, capital costs and permitting outcomes in Chile will all influence that decision, and further equity raisings or debt may be needed for construction. The immediate milestones are first-tranche settlement on 4 November, the December meeting, and delivery of the definitive feasibility study by year-end.