TNC bought the Great Australia Mine, which is now called the Cloncurry copper project, off Round Oak Minerals. It has been in care and maintenance since 2018.

It said the funds would be used to re-open the Great Australia Mine which has operated in various periods for more than a century. Its re-opening follows last month’s decision by Glencore to close its Mt Isa copper mines by 2025.

Shares in the company tumbled 16 per cent after it revealed the $19.7 million placement and another $4.3 million in converted debt, which it said was strongly supported by institutions.

It said 125 million shares would be issued at 12 cents a share and it would be done in two tranches.

It has also signed a term sheet with a specialist mine finance group for a $US28 million debt facility to support the growth the business.

Existing shareholder Tembo Capital has subscribed for 54 million shares, which needs shareholder and Foreign Investment Review Board approval.

It was the existing Tembo debt that was converted to equity which TNC said would provide it with balance sheet strength and help it access further liquidity.

Further exploration would also be carried out around Cloncurry and at the Vero resource, north of Mt Isa.

When mining starts, TNC will need to recruit about 35 to 40 extra people. Based on current workforce numbers this would mean about 100 people across total workforce needed on-site.

True North managing director Marty Costello said the placement represented a substantial de-risking of the Great Australian Mine restart.

“We expect completion of the mining study for the Great Australian Mine and a financial investment decision by early December,” he said.

“We are laser focused on delivering on our stated objectives and creating value for our shareholders.”