Lefroy Exploration has secured a $2.5 million Profit Cash Advance Facility from BML Ventures, fully funding the Lucky Strike Gold Project through to profit-share distributions in early 2026 while avoiding shareholder dilution.
- Profit Cash Advance Facility agreement with BML Ventures for $2.5 million
- Funding drawn quarterly with first $1 million by September 2025 quarter
- 8% annual interest rate capitalised monthly, secured by Lucky Strike tenement mortgage
- Avoids dilution of existing shareholders and retains full ownership of resources
- Strengthens cash position to support exploration across Lefroy’s broader tenements
Funding Secured for Lucky Strike
Lefroy Exploration Limited (ASX, LEX) has successfully secured a crucial $2.5 million Profit Cash Advance Facility from its profit-sharing partner BML Ventures Pty Ltd. This funding arrangement is specifically tied to the Lucky Strike Gold Project, which holds a measured and indicated mineral resource estimate of approximately 79,600 ounces of gold. The agreement ensures Lefroy is fully funded through to the commencement of profit-share distributions expected in the first half of 2026.
Structure and Terms of the Facility
The facility will be drawn down in quarterly increments of $500,000, with the initial $1 million scheduled for completion by the end of the September 2025 quarter. Subsequent advances will be available in the December, March, and June quarters of FY26. The loan carries an 8% annual interest rate, which is capitalised monthly and deducted from Lefroy’s 50% entitlement under the existing profit-sharing agreement with BML. Security for the facility is limited to a tenement mortgage over the Lucky Strike mining tenement, with no upfront fees, underscoring the confidence BML has in the project’s prospects.
Strategic Implications for Lefroy
CEO Graeme Gribbin highlighted that this funding arrangement not only strengthens Lefroy’s cash position but importantly avoids dilution of existing shareholders. By retaining 100% ownership of the mineral resources and tenements, Lefroy maintains strategic control over its assets while advancing towards operational readiness. The partnership with BML, a well-established mining contractor with a strong track record in the Kalgoorlie region, also provides operational synergies and technical expertise as Lefroy prepares for production.
Broader Exploration and Development Plans
Beyond Lucky Strike, Lefroy holds over one million ounces of gold resources across multiple deposits including Mt Martin and Burns Central. The secured funding will enable the company to accelerate exploration programs targeting resource extensions and new discoveries across its 635 square kilometre tenure in the prolific Kalgoorlie-Kambalda gold district. Lefroy’s low-cost, profit-share mining strategy positions it well to unlock value from these deposits without the need for significant upfront capital.
Looking Ahead
With regulatory and pre-mining activities progressing, Lefroy is on track to commence operations at Lucky Strike by late 2025. The Profit Cash Advance Facility provides a financial runway to support this transition and fund ongoing exploration, setting the stage for potential growth and cash flow generation in the near term.
Bottom Line?
Lefroy’s funding deal with BML sets a solid foundation for advancing Lucky Strike and expanding its gold footprint without shareholder dilution.
Questions in the middle?
- How will the capitalised interest impact Lefroy’s cash flow once production begins?
- What are the prospects for extending resources at Mt Martin and Burns Central?
- Could similar profit-sharing funding models be applied to Lefroy’s other deposits?