Nagambie Resources Secures $3M Loan Amid Share Placement Drive
Nagambie Resources reported a challenging quarter with negative operating cash flow but bolstered its liquidity through a $3 million secured loan and an ongoing share placement.
- Net cash used in operating activities, AUD 165,000
- Net cash used in investing activities – AUD 108,000
- Net cash provided by financing activities, AUD 350,000
- Secured $3 million loan facility drawn to AUD 2.95 million at 10% interest
- Share placement underway following trading halt announcement
Quarterly Cash Flow Overview
Nagambie Resources Limited has released its cash flow report for the quarter ending 30 June 2025, revealing a net cash outflow from operating activities of AUD 165,000. This reflects ongoing expenditure on exploration and corporate costs, which continue to weigh on the company’s liquidity position. Investing activities also consumed AUD 108,000, primarily related to capitalised exploration and evaluation expenses.
Financing Activities and Loan Facility
To offset these outflows, Nagambie secured a significant boost from financing activities, generating AUD 350,000 during the quarter. Central to this was the drawdown of a secured loan facility arranged with PPT Nominees Pty Ltd, amounting to AUD 2.95 million out of a maximum AUD 3 million. The loan carries a 10% annual interest rate and is available until mid-September 2025, providing the company with critical short-term liquidity.
Share Placement and Future Funding
In addition to the loan, Nagambie announced a share placement via a trading halt on 30 July 2025, aimed at raising further capital to support its operations and exploration programs. While details on the size and pricing of the placement remain undisclosed, this move signals the company’s proactive approach to securing funding amid a period of negative cash flow.
Cash Position and Going Concern
At quarter’s end, Nagambie held AUD 111,000 in cash and cash equivalents, supplemented by an unused financing facility of AUD 50,000. Despite the current cash burn, the company affirms its expectation to continue as a going concern, supported by the secured loan and anticipated proceeds from the share placement. However, the limited cash reserves underscore the importance of successful capital raising to sustain ongoing activities.
Outlook and Market Implications
Nagambie’s financial disclosures highlight the typical challenges faced by junior mining explorers balancing exploration expenditure with funding constraints. The secured loan facility and share placement are critical lifelines, but the company’s ability to convert these into sustained operational progress will be closely watched by investors. The coming quarters will reveal whether Nagambie can stabilize its cash flow and advance its exploration agenda without further dilution or debt.
Bottom Line?
Nagambie’s liquidity lifelines offer breathing room, but the success of its share placement will be pivotal for its next phase.
Questions in the middle?
- What are the terms and expected size of the ongoing share placement?
- How will Nagambie manage its cash burn if capital raising falls short?
- What exploration milestones could materially improve the company’s financial outlook?
