Santana Minerals Raises A$63M to Fast-Track Bendigo-Ophir Gold Project
Santana Minerals has raised A$63 million through a fully underwritten placement and a Share Purchase Plan to fast-track development of its Bendigo-Ophir Gold Project, attracting strong support from international and domestic investors.
- A$60 million fully underwritten placement at A$0.58 per share
- Additional A$3 million Share Purchase Plan offered to eligible shareholders
- Funds earmarked for infrastructure, land acquisition, exploration, and project readiness
- Strong backing from New Zealand and domestic investors
- Placement settlement expected mid-August 2025; SPP opens late August
Capital Raise to Propel Bendigo-Ophir Development
Santana Minerals Limited has announced a significant capital raising initiative to advance its Bendigo-Ophir Gold Project, a key asset in its portfolio. The company secured A$60 million through a fully underwritten placement priced at A$0.58 per share, complemented by a non-underwritten Share Purchase Plan (SPP) targeting an additional A$3 million. This combined A$63 million injection is set to accelerate project development and readiness.
The placement attracted strong interest from sophisticated investors, notably international resource funds from New Zealand, alongside existing domestic and high-net-worth shareholders. This cross-border support underscores the project's perceived economic potential and regional importance.
Strategic Use of Funds
Proceeds from the capital raise, together with Santana’s existing cash reserves of approximately A$47.5 million, will be deployed across several critical areas. These include accelerating development activities ahead of a Final Investment Decision, initiating early infrastructure civil works, and potentially acquiring freehold lands impacted by mining operations. The company also plans to intensify exploration efforts on high-priority targets and procure long-lead plant and infrastructure components essential for project execution.
Notably, land acquisition negotiations with Bendigo Station Limited are underway but remain subject to regulatory approvals, including from the New Zealand Overseas Investment Office. While these discussions are promising, Santana cautions investors that binding agreements are not guaranteed.
Placement and SPP Details
The placement shares will rank equally with existing ordinary shares and are expected to settle by 15 August 2025, with trading commencing shortly after. The SPP, offering eligible shareholders the opportunity to purchase shares at the same price, opens around 20 August and closes in early September. Directors have indicated their intention to participate in the SPP, signaling confidence in the company’s trajectory.
Canaccord Genuity (Australia) Limited acted as sole lead manager, underwriter, and bookrunner for the placement, receiving customary fees. The underwriting agreement includes standard termination clauses covering market disruptions, regulatory actions, and material adverse changes, ensuring protections for both parties.
Investor Confidence and Regional Impact
CEO Damian Spring highlighted the strong investor interest as an endorsement of the Bendigo-Ophir project’s significance. He emphasized the potential for the project to contribute meaningfully to New Zealand’s economic base, reflecting a broader trend of international capital flowing into resource developments with regional benefits.
As Santana progresses through consenting and prepares for its final investment decision, this capital raise positions the company to maintain momentum and capitalize on exploration and development opportunities.
Bottom Line?
Santana’s successful capital raise sets the stage for critical next steps in Bendigo-Ophir’s development, but regulatory approvals and market conditions remain key watchpoints.
Questions in the middle?
- Will Santana secure the necessary Overseas Investment Office approvals for land acquisitions?
- How will the SPP subscription perform given it is not underwritten?
- Could market volatility or regulatory changes trigger underwriting termination events?
