North Stawell Minerals Targets $3.6M Equity Raise with $0.03 Share Price
North Stawell Minerals Ltd (ASX – NSM) has opened a $2.1 million non-renounceable entitlement offer to fund key gold exploration projects in Victoria. This follows a $1.5 million placement, together raising $3.6 million to advance drilling and development.
- 2-for-9 pro-rata entitlement offer at $0.03 per share
- Total equity raising of approximately $3.6 million including $1.5 million placement
- Funds earmarked for exploration at Darlington, Lubeck Tip, Wildwood and working capital
- Offer open to eligible shareholders in Australia, New Zealand and select jurisdictions
- Entitlement offer closes 11 July 2025; shares expected to trade from 21 July 2025
Capital Raising to Fuel Exploration Ambitions
North Stawell Minerals Ltd (ASX, NSM), an Australian gold exploration company focused on the highly prospective Stawell Mineralised Corridor in Victoria, has officially opened a non-renounceable entitlement offer to raise approximately $2.1 million. The offer invites eligible shareholders to subscribe for 2 new shares for every 9 shares held at an issue price of 3 cents per share.
This entitlement offer complements a recent placement that raised $1.5 million from sophisticated and institutional investors, bringing the total equity raising to approximately $3.6 million before costs. The combined funds are intended to accelerate exploration and drilling programs at key projects including Darlington, Lubeck Tip, and Wildwood, as well as to provide general working capital and cover the costs of the capital raising.
Strategic Focus on Stawell Mineralised Corridor
NSM’s portfolio covers 504 square kilometres along the Stawell Mineralised Corridor, a region with a rich history of gold production exceeding five million ounces. The company is targeting large-scale gold deposits concealed beneath a thin sedimentary cover, using the nearby Stawell Gold Mine’s Magdala orebody as an exploration model. The proximity of NSM’s projects to the operating Stawell mill offers a potential short pathway to production should exploration prove successful.
The funds raised will support ongoing and planned drilling campaigns, including follow-up work at Darlington where recent drilling has intersected high-grade gold mineralisation. The company also plans to continue reviewing and progressing the Wildwood project, which hosts an 87,000-ounce mineral resource, and to advance other secondary targets such as Lubeck Tip.
Offer Details and Shareholder Participation
The entitlement offer is open to shareholders registered at 7, 00 pm Melbourne time on 19 June 2025 with addresses in Australia, New Zealand, and select jurisdictions where it is lawful to issue shares without additional regulatory filings. The offer is non-renounceable, meaning entitlements cannot be traded or transferred. Shareholders who fully subscribe to their entitlement may also apply for additional shares under a Top-Up Facility, subject to allocation discretion and regulatory limits.
The offer closes at 5, 00 pm Melbourne time on 11 July 2025, with new shares expected to be issued on 18 July and commence trading on ASX on 21 July 2025. GBA Capital Pty Ltd is acting as lead manager for the entitlement offer and placement.
Risks and Market Implications
North Stawell Minerals cautions investors on the speculative nature of exploration activities and the inherent risks involved, including funding risk, exploration uncertainty, and market volatility. The entitlement offer is not underwritten, adding an element of funding risk should subscription levels fall short. Shareholders who do not participate risk dilution of their holdings.
Nevertheless, the capital raising positions NSM to advance its exploration pipeline in a region with demonstrated gold endowment, potentially unlocking value if exploration targets convert to resources and development opportunities.
Bottom Line?
As North Stawell Minerals embarks on this critical funding round, market eyes will be on subscription uptake and exploration progress to gauge the company’s growth trajectory.
Questions in the middle?
- Will the entitlement offer achieve full subscription given it is not underwritten?
- How will the exploration results from Darlington and Wildwood influence NSM’s valuation?
- What is the potential impact on shareholding structure if significant shortfall shares are placed?