North Stawell Minerals Secures $3.6M to Accelerate Gold Exploration

Strategic Capital Injection

North Stawell Minerals Ltd (ASX – NSM) has announced a significant equity raising totalling approximately $3.6 million, comprising a $1.5 million placement and a subsequent $2.1 million non-renounceable entitlement offer. The placement was notably supported by a cornerstone sophisticated investor, signaling robust confidence in the company’s exploration strategy within the highly prospective Stawell Mineralised Corridor in Victoria.

The new shares are priced at 3 cents each, representing a modest discount to recent trading prices, designed to balance shareholder value with the need to secure essential funding. This capital injection is poised to underpin North Stawell’s ambitious exploration programs and maintain operational flexibility.

Focused Exploration Drive

The proceeds will primarily fuel drilling and exploration activities at the Darlington and Wildwood projects, alongside secondary targets like Lubeck Tip. Darlington, situated just 6 kilometres from the Stawell Gold Mine, has delivered promising results, including visible gold in diamond drill hole NSD057 with high-grade intercepts that suggest potential for significant mineralisation along an 8-kilometre trend.

North Stawell’s CEO, Campbell Olsen, highlighted the strategic importance of this funding, emphasizing the company’s intent to leverage near-surface exploration techniques to efficiently expand understanding of the gold targets. The involvement of the CSIRO in refining exploration targeting and support from Stawell Gold Mines further enhances the prospects for discovery and development.

Shareholder Participation and Capital Structure

The entitlement offer, structured on a 2-for-9 basis, allows existing shareholders to maintain their proportional ownership by subscribing to new shares at the same issue price as the placement. GBA Capital Pty Ltd has been appointed as lead manager to oversee the entitlement offer and manage any shortfall through a bookbuild process.

Assuming full subscription, the equity raising will increase North Stawell’s shares on issue to nearly 396 million, a substantial expansion from the current base. While this dilutes existing holdings, the company’s transparent approach and the top-up facility offer shareholders flexibility to increase their stake.

Outlook and Market Implications

With exploration activities ramping up, North Stawell anticipates a steady flow of news through the remainder of 2025, potentially unlocking further value. The equity raising not only secures the financial runway but also signals market confidence in the company’s long-term strategy to uncover large-scale gold deposits in a historically productive region.

Investors will be watching closely as drilling results emerge and the company advances its technical understanding of the Stawell Mineralised Corridor. The success of this capital raise and subsequent exploration outcomes could be pivotal in shaping North Stawell’s trajectory in the competitive gold exploration sector.