Stavely Minerals has raised A$1.9 million through a placement to fund drilling at its promising gold prospects, including Fairview North and South. The move aims to accelerate exploration and deliver new insights later this year.
- A$1.9 million placement at A$0.014 per share to sophisticated investors
- Free attaching options exercisable at $0.04 expiring November 2026, pending shareholder approval
- Funds allocated to drilling and geochemical analysis at Fairview North, Fairview South, and S41 gold prospects
- Placement shares to rank equally with existing shares
- Peak Asset Management acted as lead manager
Stavely Minerals Raises Capital to Fuel Exploration
Stavely Minerals Limited (ASX, SVY) has successfully secured binding commitments for a A$1.9 million placement priced at A$0.014 per share. This capital injection is targeted at advancing its gold exploration programs at the Fairview North, Fairview South, and S41 breccia-hosted gold prospects in Western Australia.
The placement includes free attaching options exercisable at $0.04 each, expiring in November 2026, subject to shareholder approval at an upcoming general meeting. The company intends to have these options listed, providing investors with potential upside exposure beyond the immediate share price.
Focused Investment in Drilling and Analysis
Funds raised will be directed primarily towards soil auger, aircore, and reverse circulation drilling campaigns, alongside comprehensive geochemical analysis. Stavely’s executive chairman and managing director, Chris Cairns, emphasized the company’s commitment to deploying a significant portion of the capital directly into the ground, underscoring the ambition behind the upcoming field programs.
These drilling initiatives are designed to unlock new data and potentially expand the known gold mineralization at the company’s key prospects. The S41 breccia-hosted gold prospect, in particular, is slated for drilling later this year or early 2026, signaling a critical phase in Stavely’s exploration timeline.
Shareholder Approval and Market Implications
The placement shares will rank equally with existing ordinary shares, ensuring new investors have the same rights. The inclusion of director participation, subject to shareholder approval, reflects confidence from within the company’s leadership.
Peak Asset Management acted as lead manager for the placement, facilitating the transaction with sophisticated investors. The placement price represents a 22% discount to the last traded share price, a common feature in capital raises aimed at securing swift commitments.
Stavely’s strategy to list the attaching options could provide additional liquidity and trading flexibility, but this remains contingent on shareholder consent. Investors will be watching closely for the outcome of the general meeting and subsequent drilling results, which could materially influence the company’s valuation and market sentiment.
Bottom Line?
Stavely’s fresh capital positions it to accelerate exploration, but shareholder approval and drilling outcomes will be key to unlocking value.
Questions in the middle?
- Will shareholders approve the listing of the attaching options and director participation?
- What timeline and results can investors expect from the upcoming drilling campaigns?
- How might the placement and option issuance impact Stavely’s share price and dilution?