G50 Raises A$10M at A$0.25 to Fund Golconda Gold, Silver, and Gallium Exploration
G50 Corp has raised A$10 million through a well-supported institutional placement to fund extensive drilling and metallurgical testing at its Golconda project in Arizona, targeting strategic minerals including gallium.
- A$10 million placement at A$0.25 per share completed
- Funding to support core and RC drilling at Golconda gold-silver-zinc-gallium project
- Metallurgical test work to validate gallium recovery underway
- Strong institutional investor interest both domestic and offshore
- US government backing strategic minerals under the CHIPS Act
Strategic Placement Boosts Golconda Exploration
G50 Corp Limited (ASX, G50) has successfully completed a A$10 million institutional placement, issuing 40 million new shares at A$0.25 each. This capital raise, well supported by both existing shareholders and new institutional investors from Australia and abroad, is earmarked to fund an ambitious exploration and development program at the Golconda project in northwest Arizona.
The Golconda project has recently emerged as a promising source of multiple strategic minerals, including gold, silver, zinc, and notably gallium; a critical metal used in semiconductor and defense industries. The company’s recent drilling campaigns have confirmed a district-scale gold and silver discovery, alongside consistent gallium mineralisation over a one-kilometre strike.
Drilling and Metallurgical Testing to Advance
With the new funds, G50 plans to deploy a track-mounted core rig and a reverse circulation (RC) rig to extend high-grade mineralisation zones and explore structural extensions along the Tub Vein and Tub Footwall Alteration Zone. These drilling efforts aim to refine the understanding of the deposit’s scale and grade, which will feed into a maiden mineral resource estimate.
Complementing the drilling, metallurgical test work focusing on gallium recovery is set to commence shortly. Early mineralogy results suggest that conventional flotation and acid leach methods could effectively extract gallium from the altered host rock surrounding the polymetallic mineralisation. This breakthrough could position Golconda as a rare domestic source of gallium, aligning with US government priorities.
Favourable Policy Backdrop and Market Interest
The timing of G50’s capital raise coincides with heightened US government support for strategic minerals, particularly under the CHIPS Act, which allocates up to US$2 billion for mining-related projects to secure supply chains for defense and semiconductor sectors. This policy environment enhances the strategic value of Golconda and has likely contributed to the strong investor demand witnessed in the placement.
Managing Director Mark Wallace highlighted the placement as a strong endorsement of G50’s vision and the project’s strategic location. He also hinted at potential expansion opportunities in Nevada, signaling a broader growth strategy beyond Arizona.
With drilling rigs scheduled to arrive imminently and metallurgical programs underway, G50 is poised to deliver critical data that could unlock further value and attract partners for development and funding.
Bottom Line?
G50’s well-timed capital raise sets the stage for pivotal drilling and testing that could establish Golconda as a key US source of strategic minerals.
Questions in the middle?
- Will metallurgical tests confirm economically viable gallium recovery methods?
- How quickly can G50 advance permitting and baseline studies to support development?
- What are the prospects for expanding mineralisation beyond current Golconda claims and into Nevada?