Ann: Placement to Raise $2.835m & Drilling Update, page-4

Good outcome,

TARUGA RAISES $2.835M VIA PLACEMENT
Taruga Gold Limited (Taruga or the Company) (ASX:TAR) is pleased to announce it has received firm commitments for a A$2,835,000 placement of 13,500,000 ordinary shares from a group of strategic and sophisticated investors including Hongze Group Ltd (Hongze) (the Investors) at an issue price of $0.21 per share (Placement) to fund due diligence exploration activities and project evaluation in the Democratic Republic of Congo (DRC). The Placement is being undertaken at a slight discount to the last closing price of $0.215 per share on 1 June 2018. The Investors approached the Company regarding a potential capital raising after the recently announced drilling update1.
Under the terms of the Placement, the Investors will also be issued with unlisted options on a 1 for 1 basis (13,500,000 free attaching options) exercisable at $0.30 each within 24 months from the date of issue.
The Company will utilise the additional placement capacity approved at Friday’s general meeting, with the balance of the shares (3,500,000) and the options to be issued under the Company’s ASX Listing Rule 7.1 capacity. Completion of the Placement is expected to occur on or around Thursday, 14 June 2018.

Commenting on the Placement Executive Director Mark Gasson stated:
“The support of Hongze highlights the significant potential of the Company’s cobalt projects in the DRC. Hongze, led by Managing Partner Mr Raymond Liu, has extensive experience in mineral investments and has interests in a range of ASX-listed companies. Taruga looks forward to working with Raymond and Hongze in advancingthe Company’s projects.”

Drilling Update at Kamilombe and Mwilu

Three diamond holes have been completed at Kamilombe and a fourth hole has been drilled down to 237m for a total of 816m by Katanga Exploration. Overall recoveries have been good but deteriorate slightly when drilling NQ core size at depth. A good correlation generally exists between the Mines R2 Series geology encountered and the historical holes drilled by KCC/Gecamines. All holes have intersected numerous breccia fault zones suggesting that faulting may account for slight discrepancies in twinned holes.