Legacy Minerals’ $7.75M Raise Hinges on Shareholder Approval Amid Exploration Push
Legacy Minerals Holdings has raised A$7.75 million through a strongly supported equity placement to accelerate drilling and exploration at its key Drake and Thomson projects in New South Wales.
- A$7.75 million placement at $0.18 per share with attaching options
- Funds to expand drilling at Thomson and initiate Drake drilling in H2 2025
- Stage 2 Scoping Study planned for Drake Project to build on earlier robust results
- Strong institutional investor support validates Legacy’s exploration strategy
- General meeting scheduled for July to approve second tranche of shares and options
Capital Raise to Accelerate Exploration
Legacy Minerals Holdings Limited (ASX: LGM) has successfully completed a A$7.75 million equity placement priced at $0.18 per share, aimed at fast-tracking exploration activities at its flagship Drake and Thomson gold-copper-silver projects in New South Wales. The placement was significantly upsized due to strong demand from specialist global resources investors, underscoring confidence in the company’s strategic direction.
With this capital injection, Legacy Minerals now holds approximately A$9 million in cash reserves, positioning the company well to fund an expanded drilling program and advance its exploration pipeline.
Drilling Programs and Project Development
Drilling is already underway at the Thomson Project, targeting a large intrusion-related gold system identified through recent geophysical surveys. The company plans to commence drilling at the Drake Project in the third to fourth quarter of 2025, running parallel with ongoing activities at Thomson. These programs aim to test high-priority near-mine and regional targets for gold, copper, and silver mineralisation.
Additionally, Legacy Minerals intends to progress a Stage 2 Scoping Study at Drake, building on the robust financial outcomes from the initial study. This next phase will incorporate new drilling results and exploration upside, potentially enhancing the project's economic profile.
Strategic Partnerships and Broader Portfolio
CEO Christopher Byrne highlighted that the placement not only supports the flagship projects but also validates the broader exploration strategy, including joint ventures with major players like Newmont, Earth AI, and S2 Resources. These partnerships provide access to additional expertise and capital, enhancing Legacy’s capacity to generate discovery value across its portfolio.
The company’s diverse project portfolio spans multiple promising targets in NSW, including the Au-Ag Black Range, Rockley, Cobar, Bauloora, Harden, Glenlogan, Fontenoy, and Nico Young projects, each with distinct geological potential.
Placement Details and Shareholder Approvals
The placement comprises two tranches: the first tranche of 31.1 million shares issued under existing placement capacity, and a second tranche of 12 million shares subject to shareholder approval at a general meeting expected in July 2025. Investors in the placement will also receive attaching options exercisable at $0.30 within two years, providing potential upside participation.
Joint Lead Managers Cumulus Wealth and Bell Potter Securities received a 6% cash fee and broker options as partial consideration for their services. The company’s capital structure will expand accordingly, with the new shares and options designed to support ongoing exploration and working capital needs.
Outlook
Legacy Minerals is now well-funded to execute an aggressive exploration campaign across its key projects, with drilling results and the Stage 2 Scoping Study expected to provide important catalysts in the coming months. The company’s ability to attract institutional support at this stage reflects growing market interest in its exploration potential and strategic partnerships.
Bottom Line?
With fresh capital secured, Legacy Minerals is poised to unlock significant value from its NSW projects, but investors will watch closely for drilling results and shareholder approvals.
Questions in the middle?
- What initial results will the ongoing Thomson drilling reveal about the intrusion-related gold system?
- How will the Stage 2 Scoping Study at Drake impact the project's valuation and development timeline?
- What are the implications of the shareholder vote on the second tranche of shares and options for Legacy’s capital structure?
