Nagambie Issues 92 Million Shares at 7.1% Discount in $1.2M Placement
Nagambie Resources has raised $1.2 million through a strategic placement to fund further diamond drilling and update its mineral resource estimate at the Nagambie Mine. The capital raise includes options that could inject additional funds over the next three years.
- Raised $1.2 million via placement at 7.1% discount to VWAP
- Funds targeted for diamond drilling of antimony and gold veins
- Update of current JORC Mineral Resource Estimate planned
- Placement includes attaching unlisted options exercisable over three years
- JP Equity Partners acted as Lead Manager and will provide ongoing advisory
Strategic Capital Raise to Fuel Exploration
Nagambie Resources Limited (ASX, NAG) has announced a $1.2 million capital raising through a strategic placement aimed at advancing exploration activities at its 100%-owned Nagambie Mine in Victoria. The funds will primarily support continued diamond drilling targeting antimony and gold veins outside the current mineral resource boundaries.
Building on Recent Encouraging Results
This placement follows promising drilling results announced in May 2025, including a notable 7.3-meter intersection grading 40.5 grams per tonne gold equivalent, which included significant antimony and gold values. These results have bolstered confidence in the project's potential and underpin the decision to accelerate drilling efforts.
Updating the JORC Mineral Resource Estimate
Part of the capital will be allocated to updating the current JORC-compliant Mineral Resource Estimate (MRE), a critical step for advancing the project’s development pathway. An updated MRE will provide a clearer picture of the resource’s scale and quality, potentially enhancing the company’s valuation and appeal to investors.
Placement Terms and Market Impact
The placement shares were issued at a 7.1% discount to the 15-day volume-weighted average price, with approximately 92.3 million shares issued. Additionally, unlisted options exercisable at 2.6 cents over three years were attached, offering potential future capital inflows of up to $1.2 million if exercised. JP Equity Partners acted as Lead Manager and will continue to provide corporate advisory services, signaling a strengthened partnership.
Strategic Importance of Antimony and Gold
Antimony, a critical mineral for national defense and industrial applications, alongside gold, positions Nagambie’s project as strategically significant. The Nagambie Mine’s location near other prominent gold-antimony deposits in Victoria adds to its potential. The company’s ongoing exploration and resource definition efforts are closely watched by the market given the rising importance of such minerals.
Bottom Line?
Nagambie’s latest capital raise sets the stage for a pivotal phase of drilling and resource refinement that could reshape its project’s prospects.
Questions in the middle?
- What will the updated JORC Mineral Resource Estimate reveal about the Nagambie Mine’s potential?
- How might the exercise of attached options impact shareholder dilution and future funding?
- What are the timelines and expected milestones for the ongoing diamond drilling program?
