Pacgold Limited has raised $5.6 million through a two-tranche placement to accelerate drilling and exploration at its Alice River Gold Project in North Queensland, signaling strong investor confidence.
- Placement of 93.3 million new shares at $0.06 each
- Funds allocated for extensive drilling and regional surveys
- Strong backing from institutional and sophisticated investors
- Directors to participate with $200,000 subscription
- Second tranche and attaching options subject to shareholder approval
Capital Raise to Accelerate Exploration
Pacgold Limited (ASX: PGO), a Queensland-focused gold explorer, has successfully secured firm commitments for a $5.6 million placement aimed at advancing its Alice River Gold Project. The capital raise involves issuing 93.3 million new shares priced at six cents each, structured in two tranches. The first tranche, raising approximately $1.3 million, will proceed under existing placement capacities, while the larger second tranche, expected to raise $4.3 million, awaits shareholder approval at a general meeting slated for early July 2025.
Backing from Institutional and Sophisticated Investors
The placement has attracted strong support from both new and existing institutional and sophisticated investors, reflecting confidence in the quality and potential of the Alice River Project. Pacgold’s Managing Director, Matthew Boyes, highlighted this endorsement as a clear vote of confidence, emphasizing the company’s readiness to expand its exploration footprint with a robust team and well-funded programs.
Focused Use of Funds on Drilling and Surveys
The funds raised will be directed towards an ambitious exploration program, including 12,000 meters of reverse circulation drilling, 3,000 meters of diamond drilling, and 5,000 meters of aircore drilling. These efforts will be complemented by regional geophysical and geochemical surveys designed to unlock further gold potential across the project’s 377 square kilometer tenure in North Queensland’s mineral-rich province.
Shareholder Participation and Incentives
In addition to external investors, Pacgold’s directors intend to subscribe for $200,000 worth of shares, subject to shareholder approval. Participants in the placement will also receive attaching options exercisable at $0.10 each, expiring at the end of 2027, providing potential upside if exploration results prove promising. These options are also pending shareholder approval, adding a layer of conditionality to the full capital raise.
Looking Ahead
The placement’s successful first tranche settlement is scheduled for early June, with trading of new shares commencing shortly thereafter. The company’s upcoming general meeting will be a key event to watch, as shareholder approval will unlock the bulk of the funds and the attaching options. With exploration programs already underway, Pacgold is positioning itself for a potentially transformative year as it seeks to capitalize on the district-scale opportunity at Alice River.
Bottom Line?
Pacgold’s $5.6 million raise sets the stage for a pivotal exploration phase, but shareholder approval remains the crucial next step.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured without delay?
- How will the market respond to potential dilution from the new shares and options?
- What early results from the expanded drilling program might signal a breakthrough at Alice River?