Waratah Raises $8.4M at $0.275 per Share to Accelerate Spur Exploration
Waratah Minerals has raised $8.4 million through a share placement to accelerate drilling at its Spur Gold-Copper Project, targeting promising gold and copper mineralisation in the Lachlan Fold Belt.
- Placement raises approximately $8.4 million at $0.275 per share
- Strong demand from existing and new institutional investors, including offshore funds
- Funds allocated to expanded drilling and geophysical work at Spur Gold-Copper Project
- Focus on epithermal gold at Spur Gold Corridor and porphyry copper-gold at Breccia West
- Project located near major mining operations including Newmont’s Cadia Valley
Funding Boost for Exploration
Waratah Minerals Limited (ASX: WTM) has successfully secured firm commitments to raise approximately $8.4 million through a share placement priced at $0.275 per share. This capital injection is set to accelerate exploration activities at the company’s Spur Gold-Copper Project, situated in the highly prospective Lachlan Fold Belt of New South Wales.
The placement attracted strong interest from both existing shareholders and new institutional investors, including offshore resource funds, underscoring confidence in Waratah’s strategic positioning and exploration potential. The new shares will rank equally with existing shares, and the placement price reflects a modest discount to recent trading levels, balancing shareholder value with the need to fund aggressive exploration.
Targeting High-Quality Mineralisation
The funds will primarily support an expanded drilling program focused on two key areas within the Spur Project. The Spur Gold Corridor has already revealed encouraging epithermal gold mineralisation extending over a strike length of approximately one kilometre, with the system remaining open in multiple directions. This corridor bears strong geological similarities to the Dalwhinnie/GRE46 discovery near Evolution Mining’s Cowal Deposit, a notable gold operation in the region.
Additionally, drilling will intensify at the Breccia West Prospect, where preliminary results suggest mineralisation characteristics akin to Newmont’s Ridgeway Deposit. This includes promising assay intercepts and host rock types indicative of porphyry copper-gold systems, which are highly sought after for their scale and grade potential.
Strategic Location and Market Context
Waratah’s Managing Director, Peter Duerden, highlighted the strategic advantage of the project’s location, just five kilometres west of Newmont’s Cadia Valley operation, one of Australia’s largest gold and copper mines. This proximity not only validates the geological prospectivity but also positions Waratah to benefit from heightened exploration interest in the Lachlan Fold Belt, driven by robust gold and copper prices globally.
With $5 million earmarked for reverse circulation drilling and $1.5 million for diamond drilling at Spur, alongside further diamond drilling at Breccia West and geophysical surveys, Waratah is gearing up for a systematic and aggressive exploration campaign. The company’s experienced team is poised to unlock value through these targeted efforts, potentially advancing the project towards resource definition.
Looking Ahead
The placement settlement is scheduled for 19 May 2025, with new shares to be allotted the following day. As Waratah embarks on this next phase, market watchers will be keenly observing drilling results and assay data, which will be critical in validating the project’s potential and shaping the company’s growth trajectory.
Bottom Line?
Waratah’s fresh capital sets the stage for a pivotal exploration phase that could redefine its standing in the Lachlan Fold Belt.
Questions in the middle?
- Will drilling results confirm the similarities to nearby major deposits?
- How will Waratah’s exploration progress influence its valuation and investor interest?
- Could the Spur Project attract partnerships or joint ventures with larger mining companies?
