Develop Raises $180M at $4.50 per Share to Accelerate Sulphur Springs and Woodlawn
Develop Global Limited has raised $180 million through a well-supported institutional placement to accelerate development at its Sulphur Springs and Woodlawn projects, aiming to extend mine lives and capitalize on new partnership opportunities.
- Institutional placement raises $180 million at $4.50 per share
- Funds to accelerate Sulphur Springs and Woodlawn copper-zinc projects
- Plans to extend mine lives to 15 years via Project DM15
- Ceases minority share sales of Woodlawn amid strong market interest
- Strong demand from domestic and international institutional investors
Develop Global's Strategic Capital Raise
Develop Global Limited (ASX – DVP) has announced a significant capital raise of $180 million through an institutional placement priced at $4.50 per share, representing a modest discount to recent trading levels. The placement attracted robust demand from both existing and new institutional investors across Australia and internationally, underscoring confidence in the company’s growth trajectory within the competitive copper and base metals sector.
Accelerating Key Projects
The proceeds will be strategically deployed to accelerate development at two cornerstone assets – the Sulphur Springs zinc-copper project and the Woodlawn copper-zinc mine. At Sulphur Springs, funds will support early pre-production capital works including underground infrastructure and plant engineering, aiming to expedite the project’s timeline. Meanwhile, at Woodlawn, the company plans to fast-track production growth by opening additional mining areas and exploring mill expansion opportunities.
Extending Mine Life and Growth Ambitions
Central to Develop’s vision is Project DM15, an ambitious initiative targeting a 15-year mine life at both Sulphur Springs and Woodlawn. This involves expanding ore bodies through new drilling drives and exploration of regional tenements, including historic mines and local targets such as Kangaroo Caves. While these targets remain aspirational and contingent on exploration success, they signal the company’s commitment to long-term value creation.
Market Position and Partnership Opportunities
In a notable strategic shift, Develop will cease selling minority stakes in Woodlawn, reflecting confidence in the asset’s value amid a global scramble for copper and base metals offtake. Managing Director Bill Beament highlighted the company’s strong reputation and momentum, which have attracted partnership opportunities beyond its current projects. This flexibility to pursue new ventures could further enhance Develop’s footprint in the mining services and ownership space.
Looking Ahead
The placement shares will represent approximately 13.9% of Develop’s existing capital, with trading expected to resume promptly. While the company cautions that forward-looking statements depend on various risks including commodity prices and exploration outcomes, this capital injection positions Develop to capitalize on a lucrative window in the copper and base metals market.
Bottom Line?
Develop’s $180 million raise sets the stage for accelerated growth; but delivery on ambitious mine life extensions remains to be proven.
Questions in the middle?
- How will Develop’s exploration results impact the feasibility of a 15-year mine life?
- What partnership opportunities might emerge from the company’s expanded capital flexibility?
- How will ceasing minority sales of Woodlawn affect Develop’s capital structure and investor sentiment?
