E79 Gold Mines has successfully raised $1.8 million through a placement oversubscribed by more than double, aiming to fund exploration at its promising Laverton South Gold Project and bolster working capital.
- Raised $1.8 million via a two-tranche placement at $0.032 per share
- Placement demand exceeded binding commitments by over twofold
- One free unlisted option issued per two shares, exercisable at $0.07 until June 2026
- Funds earmarked for aircore drilling at Laverton South Gold Project and working capital
- Director participation included but scaled back to prioritize loyal shareholders
Strong Investor Backing for Placement
Western Australian gold explorer E79 Gold Mines Limited (ASX: E79) has announced a successful capital raise of $1.8 million through a placement to institutional and sophisticated investors. The placement, priced at $0.032 per share, attracted demand more than twice the amount of binding commitments accepted, signaling robust investor confidence in the company’s exploration prospects.
The placement will be conducted in two tranches, with the first tranche raising approximately $817,000 through the issue of 25.5 million shares, and the second tranche, subject to shareholder approval, raising about $983,000 through 30.7 million shares. Alongside the shares, investors will receive one free unlisted option for every two shares, exercisable at $0.07 and expiring on 30 June 2026, pending approval at an upcoming General Meeting.
Targeted Use of Funds to Advance Exploration
The net proceeds from the placement will be directed primarily towards aircore drilling at E79 Gold’s Laverton South Gold Project, located within the prolific Laverton Tectonic Zone in Western Australia. This region is renowned for its significant gold endowment, hosting over 30 million ounces of gold. The company aims to capitalize on recent nearby discoveries, notably Kalgoorlie Gold Mining Ltd’s Lighthorse discovery, which lies adjacent to E79’s tenure and has returned promising assay results.
CEO Ned Summerhayes expressed enthusiasm about the strong investor support, describing it as a “strong endorsement” of the Laverton South project’s discovery potential. The planned drilling program will focus on testing targets near the tenement boundary with Kalgoorlie Gold’s Lighthorse discovery, which has revealed thick, shallow zones of gold mineralization, indicating a potentially significant new gold system.
Governance and Shareholder Considerations
Director participation in the placement amounted to $61,440, though bids were scaled back to allow greater allocation to loyal shareholders. The issuance of shares and attaching options under the second tranche and the options themselves are subject to shareholder approval at a General Meeting expected in April 2025. The placement shares represent a 22% discount to the last traded share price and a 20.4% discount to the five-day volume weighted average price, reflecting a strategic pricing to attract strong investor interest.
Settlement of the first tranche is anticipated by late February 2025, enabling the company to promptly commence its exploration activities. The placement was managed jointly by GBA Capital and Whairo Capital, underscoring the professional backing behind the capital raise.
Broader Project Portfolio and Future Outlook
Beyond Laverton South, E79 Gold holds a substantial portfolio of exploration assets, including the Mountain Home copper-gold project in the Northern Territory’s McArthur Basin, where high-grade copper and gold assays have been recorded. Preparations for drilling at Mountain Home are underway, with regulatory approvals progressing and drilling planned for the upcoming dry season.
The successful placement and strong investor appetite position E79 Gold to accelerate its exploration programs across its portfolio, potentially unlocking significant value from its highly prospective ground in Western Australia and the Northern Territory.
Bottom Line?
E79 Gold’s oversubscribed placement sets the stage for a pivotal drilling campaign that could redefine its exploration trajectory.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured without delay?
- How will initial drilling results at Laverton South influence E79 Gold’s valuation and investor sentiment?
- What are the timelines and expected milestones for the Mountain Home copper-gold project drilling?