Warriedar Resources has raised A$17 million through a placement to fast-track drilling and development at its Ricciardo deposit, home to Australia’s largest open-pit antimony resource and over 1 million ounces of gold. A Share Purchase Plan will follow, targeting an additional A$2 million.
- A$17 million equity placement at A$0.10 per share completed
- Strong institutional demand from Australian and North American investors
- Funds allocated to multi-rig drilling and resource expansion at Ricciardo
- Share Purchase Plan (SPP) to raise up to A$2 million for existing shareholders
- Ricciardo hosts Australia’s largest open-pit antimony resource and 1Moz+ gold
Capital Injection to Accelerate Exploration
Warriedar Resources Limited (ASX: WA8) has successfully secured firm commitments for a A$17 million equity placement priced at A$0.10 per share. This capital raise is designed to fast-track the development of the Ricciardo deposit, a flagship asset within the Golden Range Project located in Western Australia. The placement attracted strong demand from high-quality institutional investors across Australia and North America, underscoring growing market confidence in Warriedar’s growth strategy.
Following the placement, Warriedar expects to hold approximately A$23 million in cash reserves before costs, providing a robust financial platform to advance its exploration and development programs. Complementing this, the company is launching a Share Purchase Plan (SPP) aimed at raising up to an additional A$2 million from eligible existing shareholders, also priced at A$0.10 per share.
Focused Growth at Ricciardo Deposit
The Ricciardo deposit is a cornerstone of Warriedar’s portfolio, boasting Australia’s largest open-pit antimony resource with over 57,000 tonnes of contained antimony, alongside a rapidly growing gold resource exceeding 1 million ounces. This dual commodity focus positions Ricciardo as a uniquely valuable asset in the current market.
Warriedar’s Managing Director Amanda Buckingham emphasized the company’s commitment to accelerating resource growth through a multi-rig drilling program. Currently, two diamond rigs are operating continuously at Windinne Well and Ricciardo, with a third rig dedicated to antimony-focused reverse circulation drilling scheduled to commence in June 2025. The company anticipates receiving the first assay results from this program starting in June, with further resource upgrades planned for the December quarter.
Strategic Use of Funds
The proceeds from the placement will be strategically deployed to support over 50,000 meters of new drilling aimed at resource growth and upgrades. Additionally, funds will underpin ongoing metallurgical and engineering studies, geoscience and geophysical targeting, tenure fees, corporate costs, and general working capital. This comprehensive approach reflects Warriedar’s ambition to not only expand the resource base but also to advance the project’s readiness for potential development and monetization.
Market Reception and Next Steps
The placement price represented a discount to recent trading prices, a common feature in capital raises to incentivize participation. Bell Potter Securities Limited and Cygnet Capital Pty Ltd acted as joint lead managers and book runners, facilitating the successful completion of the placement. Settlement and allotment of the new shares are scheduled for early June, with the SPP opening shortly thereafter.
Warriedar’s strategy remains firmly focused on high-impact drilling along the Golden Corridor, targeting both resource expansion and new discoveries across the 70-kilometer mineralized shear zone. The company’s strong cash position and active drilling program position it well to capitalize on the significant resource potential at Ricciardo and beyond.
Bottom Line?
With fresh capital secured, Warriedar is poised to deliver critical assay results that could reshape the valuation of its flagship Ricciardo deposit.
Questions in the middle?
- How will upcoming assay results influence Warriedar’s resource estimates and project valuation?
- What are the potential timelines and hurdles for advancing Ricciardo towards development?
- How might the scale-back provisions in the SPP affect shareholder participation and capital raised?