Introduction to TG Metals' Strategic Acquisition

In a significant move to bolster its portfolio, TG Metals Limited (ASX: TG6) has announced the acquisition of an 80% stake in the Van Uden Gold Project, located in the highly prospective Forrestania Greenstone Belt of Western Australia. This strategic acquisition positions TG Metals to capitalize on the project's potential for near-term cash flow, leveraging the current high gold prices.

Key Highlights of the Acquisition

• Location and Accessibility: The Van Uden Gold Project is situated near TG Metals' existing Lake Johnston lithium deposits, offering operational synergies and easy access via sealed roads.
• Proximity to Processing Facilities: The project is strategically close to the Marvel Loch and Westonia-Edna May gold processing plants, facilitating efficient toll treatment options.
• Ownership Structure: TG Metals holds 80% of the project, while Barto Gold Pty Ltd retains a 20% equity interest.
• Historical Production and Potential: The project includes four granted mining leases with a history of high-grade drilling, providing substantial exploration upside.

Transaction Details

The acquisition involves an upfront cash payment of AUD 2.5 million and the issuance of 5,714,285 fully paid ordinary shares in TG Metals, valued at AUD 1 million. These shares are issued at a premium of 67% to the closing share price on February 28, 2025. An additional deferred cash payment of AUD 0.5 million is contingent on either the completion of the acquisition within 12 months or an equity raising of at least AUD 1 million.

Strategic Benefits for TG Metals

This acquisition is pivotal for TG Metals, offering several strategic benefits:

• Diversification: The addition of gold to TG Metals' portfolio complements its existing lithium deposits and nickel prospects, enhancing its commodity base.
• Operational Synergies: The proximity to the Lake Johnston project allows for shared logistics and personnel, optimizing operational efficiency.
• Near-Term Revenue Opportunities: The project offers potential for early cash flow through toll treatment of existing ore stockpiles and dumps.

Future Plans and Exploration Upside

TG Metals plans to focus on the following key initiatives:

• JORC 2012 Compliance: A priority is to update the historical JORC 2004 resource estimate to meet the more stringent JORC 2012 standards, leveraging extensive historical drilling data.
• Confirmatory Drilling and Bulk Density Analysis: The company will conduct confirmatory drilling and bulk density tests to refine the mineral resource estimate.
• Exploration Upside: The project's mineralization is open down-dip along its over 2,000-meter strike length, providing significant exploration potential.

Conclusion

The acquisition of the Van Uden Gold Project marks a significant milestone for TG Metals, positioning the company for growth in the gold sector while maintaining its focus on lithium. With its strategic location and potential for near-term cash flow, this project is poised to contribute substantially to TG Metals' future success.