Accelerate Issues 135M Shares at $0.01 to Fund Kanowna East Gold Push

Capital Raising to Fuel Gold Strategy

Accelerate Resources Limited (ASX: AX8) announced a successful capital raising of A$1.35 million, aimed at propelling its newly adopted gold exploration strategy. The placement, priced at A$0.01 per share, attracted firm commitments from professional and sophisticated investors, providing the company with essential funding to ramp up activities at its recently acquired Kanowna East Gold Project.

Located just 25 kilometres from Kalgoorlie’s renowned Superpit and adjacent to the Kanowna Belle gold mine, the Kanowna East project offers a strategic foothold in one of Western Australia’s most prolific gold regions. Accelerate holds a 70% interest in the project, positioning it well to capitalise on the region’s rich mineral endowment.

Strategic Asset Management and Board Changes

Alongside the capital raise, Accelerate Resources revealed plans to divest non-core assets to further strengthen its balance sheet. This financial repositioning is designed to support accelerated exploration not only at Kanowna East but also at the Comet Gold Project, signalling a focused commitment to gold exploration.

In a notable board development, Ms Zhan resigned as a director with immediate effect but will assist during the transition and in the divestment process. Chairman Richard Hill publicly acknowledged her contributions since listing and wished her well in future endeavours, underscoring a period of strategic realignment within the company’s leadership.

Placement Details and Market Implications

The placement involved issuing 135 million new shares, representing a 23.1% discount to the last traded price and a slight discount to the 15-day VWAP. Of these, 125 million shares were issued under the company’s existing placement capacities, while the remaining shares are contingent on shareholder approval. Notably, the CEO and directors intend to participate in the placement, aligning management’s interests with shareholders.

Euroz Hartleys Limited acted as sole lead manager and bookrunner, facilitating the transaction and underscoring market confidence in Accelerate’s strategic direction. The company anticipates returning to normal trading shortly and scheduling a general meeting to approve director participation in the coming months.

Looking Ahead

With fresh capital and a sharpened focus on gold exploration, Accelerate Resources is poised to advance its Kanowna East project aggressively. The company’s ability to convert exploration potential into tangible resources will be critical in validating this strategic pivot and delivering shareholder value in a competitive sector.