Blackjack Gold Ramp-Up Funded Amid Share Placement Discount and Related Party Approvals
Native Mineral Resources has raised A$10 million through a share placement to fund the ramp-up of gold production at its Blackjack plant in Queensland, following its first gold pour ahead of schedule.
- A$10 million share placement at A$0.16 per share completed
- First gold poured at Blackjack processing plant using remnant material
- Funds allocated for plant commissioning, expansion studies, and drilling
- Placement shares issued at 12.3% discount to last closing price
- Extraordinary General Meeting planned for related party participation approval
Native Mineral Resources Advances Gold Production
Native Mineral Resources Holdings Limited (ASX, NMR) has taken a significant step forward in its gold mining ambitions by successfully raising A$10 million through a share placement. This capital injection is earmarked to support the ramp-up of production at its Blackjack processing plant located in Charters Towers, Queensland. The company recently celebrated pouring its first gold from the plant ahead of schedule, a milestone that signals operational momentum.
Funding the Next Phase of Growth
The freshly raised funds will be directed towards completing the remaining commissioning of the Blackjack plant, covering refurbishment costs, and advancing expansion studies. Additionally, Native Mineral Resources plans to intensify infill and resource drilling, targeting weekly reverse circulation drilling of between 1,000 and 1,250 meters. These activities are crucial for underpinning the resource base and supporting longer-term production growth.
Share Placement Details and Market Impact
The placement involved issuing 62.5 million new shares at A$0.16 each, representing a 12.3% discount to the last closing price of A$0.1825. Blue Ocean Equities acted as lead manager and will receive a 6% fee on the proceeds. The placement was conducted within the company’s existing placement capacity, with an Extraordinary General Meeting scheduled to approve participation from related parties, ensuring compliance with ASX regulations.
Leadership Confidence and Forward Outlook
Managing Director and CEO Blake Cannavo expressed satisfaction with the strong shareholder support, emphasizing that the early gold pour at Blackjack demonstrates Native Mineral Resources’ ability to meet or exceed expectations. The company is now focused on steadily increasing production through the third quarter of calendar year 2025, aiming to unlock the full potential of its Charters Towers assets.
Strategic Partnerships and Unhedged Production
Native Mineral Resources maintains a Refining and Offtake Agreement with ABC Refinery, ensuring a streamlined pathway for gold sales. Notably, the company’s gold production remains unhedged, exposing it directly to prevailing gold price movements, which could amplify returns or risks depending on market conditions.
Bottom Line?
As Native Mineral Resources accelerates production at Blackjack, investors will keenly watch upcoming drilling results and operational milestones for signs of sustained growth.
Questions in the middle?
- How will the ramp-up in production impact Native Mineral Resources’ cash flow and profitability in the near term?
- What are the expected outcomes and timelines for the ongoing expansion studies and drilling programs?
- How might the 12.3% discount on placement shares affect existing shareholders and market perception?
