Nimy Raises $2.75M at 8.5c to Fund Block 3 Gallium Resource Drilling

Strategic Capital Raise to Boost Gallium Exploration

Nimy Resources Limited (ASX:NIM) has successfully completed a $2.75 million share placement, signaling strong investor confidence in its Block 3 gallium discovery located in Western Australia’s Mons Belt. The placement, priced at 8.5 cents per share, attracted both existing and new institutional and sophisticated investors, underscoring the growing strategic interest in gallium as a critical mineral.

The funds raised will be deployed to accelerate the ongoing Phase II drilling program at Block 3, aimed at establishing a maiden JORC-compliant resource. This drilling is complemented by metallurgical test work designed to refine gallium extraction methods, a crucial step toward commercial viability. Additionally, Nimy is advancing discussions with potential offtake partners, positioning itself to supply high-grade gallium to markets hungry for secure sources.

Gallium’s Rising Strategic Importance

Gallium prices have surged to over $1,000 per kilogram, driven largely by China’s export restrictions that have tightened global supply chains, particularly impacting semiconductor manufacturing and defence industries. Nimy’s Managing Director, Luke Hampson, highlighted the company’s ambition to become a major supplier to the US and EU markets, which are actively seeking to diversify their critical mineral sources amid geopolitical tensions.

The Block 3 discovery is part of the broader Mons Belt, a district-scale mineral province spanning approximately 3,004 square kilometers. This region is emerging as a new frontier for base metals and critical minerals exploration in Western Australia, with Nimy collaborating with the CSIRO to better understand the geology and mineralisation potential.

Placement Structure and Governance

The placement will issue over 32 million new shares, which will rank equally with existing shares, and includes 16 million free attaching unlisted options exercisable at 13.5 cents within three years, subject to shareholder approval. Joint Lead Managers Charles Street Pty Ltd and GBA Capital Pty Ltd will receive fees and options as part of their advisory role, with some related party disclosures noted due to familial ties within the company’s board.

Upcoming newsflow from Nimy includes drilling updates, assay results, metallurgical test outcomes, and progress on offtake negotiations. These developments will be critical in validating the resource potential and advancing Nimy’s strategic positioning in the critical minerals sector.

Looking Ahead

As Nimy Resources moves to define and develop its gallium resource, the company is navigating a market environment marked by supply constraints and heightened demand for critical minerals. The successful capital raise provides a timely boost to exploration activities, but the path to commercial production will depend on forthcoming assay results and metallurgical success.