Leeuwin Metals Plans $3.25M Capital Raise Following Marda Gold Acquisition

Strategic Acquisition Bolsters Leeuwin Metals’ Portfolio

Leeuwin Metals Limited (ASX:LM1) has taken a significant step forward with the binding agreement to acquire 100% of the Marda Gold Project from Ramelius Resources Limited (ASX:RMS). This acquisition, subject to customary conditions and shareholder approval, adds a flagship precious metals asset to Leeuwin’s diversified portfolio, which already includes iron ore, nickel, lithium, and battery metals projects across Australia and Canada.

The Marda Gold Project is located in the prolific Western Australian goldfields, a region renowned for its rich mineral endowment and established mining infrastructure. The project spans over 500 square kilometres of granted mining, exploration, and prospecting leases, featuring multiple existing open pits and high-grade drill intercepts that underscore its exploration upside.

High-Grade Potential and Infrastructure Advantage

Leeuwin highlights the Marda Project’s proven mining history, including production of 2.3 million tonnes at 1.9 grams per tonne gold for approximately 143,000 ounces from seven pits between 2019 and 2023. Drill results from key prospects such as Marda North reveal impressive intercepts, including 2 metres at 16.75 g/t Au and 3.6 metres at 16.4 g/t Au, indicating robust mineralisation near surface and open for expansion.

Strategically, Marda benefits from proximity to existing processing hubs and infrastructure, which could reduce time and capital expenditure to production in the future. Ramelius Resources will also become a strategic shareholder in Leeuwin Metals, reinforcing confidence in the asset’s potential and the company’s growth trajectory.

Capital Raising to Accelerate Exploration

To fund its ambitious exploration plans, Leeuwin Metals announced a two-tranche placement aiming to raise approximately A$3.25 million at an offer price of A$0.098 per share, representing a discount of around 18% to recent trading prices. The first tranche of A$1.55 million will be issued under existing placement capacity, with the second tranche of A$1.69 million subject to shareholder approval.

Proceeds from the capital raise will primarily support a comprehensive 10,000-metre reverse circulation drilling program at Marda, alongside exploration activities at the West Pilbara Iron Ore Project and Canadian lithium and nickel assets. The company also plans to allocate funds to corporate and working capital needs, ensuring operational flexibility.

Broader Portfolio and Exploration Strategy

Beyond Marda, Leeuwin’s portfolio includes the West Pilbara Iron Ore Project, with surface samples exceeding 50% iron over a 2.4-kilometre strike length near Rio Tinto’s Mesa A mine, and Canadian projects targeting lithium pegmatites and nickel sulphides. Recent drilling in Canada has returned encouraging results, such as 20.59 metres at 1.23% Li2O in Manitoba’s Cross Lake lithium project and 6.5 metres at 2.56% nickel at William Lake.

The company’s exploration approach balances near-mine extensions, brownfield testing of historical anomalies, and greenfield grassroots exploration, aiming to unlock value across its diversified asset base. Leeuwin’s leadership team brings proven expertise in discovery and development, positioning the company to advance these projects responsibly and efficiently.

Risks and Next Steps

While the acquisition and capital raising mark pivotal milestones, completion remains subject to shareholder approvals and satisfaction of conditions precedent. Risks include exploration uncertainties, regulatory compliance, and market conditions that could impact funding and project timelines. The company has outlined key risks including acquisition completion risk, exploration risk, and shareholder dilution.

Leeuwin Metals plans to hold an Extraordinary General Meeting in late February 2025 to seek shareholder approval for the second tranche placement and the Marda acquisition completion. Investors will be watching closely as the company embarks on its next phase of exploration and value creation.