Zeus Raises $1.2M via SPP, Options Offer, and Placement Amid ASX Reinstatement

Reinstatement and Fundraising Success

After a suspension triggered by director resignation and compliance issues, Zeus Resources Ltd (ASX: ZEU) achieved a significant milestone with the reinstatement of its securities to trading on the ASX on 17 October 2024. This development restored market access and investor confidence, paving the way for a series of successful capital raises during the December quarter.

The company executed a Share Purchase Plan (SPP) that was strongly supported by shareholders, attracting $747,500 in applications against a target of $600,000. The oversubscription was scaled back on a pro rata basis, resulting in the issuance of 75 million new shares and 37.5 million free-attaching options exercisable at $0.02 until December 2027.

Complementing the SPP, Zeus closed a Priority Options Offer raising $105,297, with the shortfall of $92,872 subsequently placed by lead manager GBA Capital Pty Ltd. Additionally, a Placement completed in December secured $300,000 from sophisticated investors, issuing 37.5 million shares and 18.75 million options under similar terms. Collectively, these efforts bolstered the company’s cash reserves to A$2.39 million, with no debt obligations.

Exploration Advances Across Key Projects

Zeus Resources is actively expanding its footprint in mineral-rich regions of South Australia and Western Australia. The highlight was the granting of exploration licence EL7039 in the Olary Domain, South Australia, on 15 January 2025. This licence, along with two other pending applications, targets sediment-hosted uranium and base metals, as well as lithium and rare earth element (REE) bearing pegmatites associated with the Bimbowrie Suite monzogranites.

The Olary Domain is geologically significant, hosting mineralisation styles akin to Olympic Dam and Ernest Henry, including iron oxide copper-gold-uranium (IOCGU) deposits and Broken Hill-style stratiform lead-zinc-silver mineralisation. This positions Zeus well to explore for multiple commodities in a highly prospective terrain.

Elsewhere, the Mortimer Hills Project in Western Australia remains under review for a 2025 exploration program targeting lithium and REE pegmatites, although no fieldwork was conducted during the quarter. The Wiluna Project awaits finalisation of a Heritage Protection Agreement before exploration activities such as gravity surveys and drilling can commence.

In the Paynes Find district, the Blue Hill/Wydgee Project comprises granted and applied exploration licences near established gold mines. The company is assessing upcoming exploration strategies here. Conversely, Zeus withdrew its applications in the Musgrave region, signalling a strategic focus on more prospective or accessible tenements.

Corporate and Financial Position

Zeus Resources reported modest exploration expenditure of $25,685 for the quarter, reflecting a cautious approach while consolidating its financial position. Payments to related parties, including directors and company secretarial services, amounted to $71,800.

The company’s cash flow statement reveals net cash used in operating activities of $175,000 and investing activities of $24,000, offset by financing inflows of $1.005 million. This financial discipline, combined with successful capital raises, provides a runway of approximately 12 quarters based on current expenditure levels.

Looking ahead, Zeus is positioned to leverage its strengthened balance sheet to advance exploration and potentially attract strategic partners. The company’s focus on uranium, lithium, and rare earth elements aligns with growing global demand for critical minerals, potentially enhancing its appeal to investors and stakeholders.