Black Canyon’s $10M Raise Highlights Pressure to Deliver on Wandanya Potential

Capital Raise to Accelerate Exploration

Black Canyon Limited (ASX, BCA) has successfully completed a $10 million placement, issuing 23.8 million new shares at $0.42 each. This capital injection is set to fast-track exploration and development activities at the company's flagship Wandanya manganese and iron project, located in the underexplored Oakover Basin of Western Australia.

The placement attracted strong backing from existing institutional shareholders such as Nero Resource Fund, Lowell Resources, and Perennial Natural Resources, alongside new institutional investors and family offices. This broad support underscores growing market confidence in Black Canyon’s asset quality and the potential of its manganese portfolio.

Strategic Use of Funds

With a pro-forma cash balance of $12 million, Black Canyon plans to intensify its exploration efforts. The funds will primarily support reverse circulation and diamond core drilling programs at Wandanya, metallurgical testwork to better understand ore characteristics, and feasibility studies to assess project development pathways. Additionally, the company will continue exploration across its extensive manganese tenement holdings in the Balfour Manganese Field.

Immediate milestones include the release of assay results from the third phase of drilling expected between mid-October and November, followed by diamond drilling in the December quarter to obtain large core samples for metallurgical analysis. Heritage surveys are also underway to facilitate exploration access to new areas.

Wandanya’s Growing Significance

The Wandanya discovery represents a new exploration model on the eastern margin of the Oakover Basin, featuring hydrothermal, stratabound high-grade manganese and iron mineralisation with significant scale potential. Black Canyon’s recent resource estimate across the Balfour Manganese Field totals 314 million tonnes at an average grade of 10.4% manganese, positioning the company as a notable player in this critical mineral sector.

Manganese remains essential for steel alloy production and is increasingly critical for lithium-ion battery cathodes, underpinning long-term demand. Black Canyon’s progress at Wandanya could thus have broader implications for supply chains in steel manufacturing and battery materials.

Market Position and Outlook

Black Canyon’s Managing Director Brendan Cummins highlighted the strong investor support as a vote of confidence in the company’s strategy and assets. The placement price represented a modest 5.8% discount to the recent volume-weighted average price, balancing capital raising efficiency with shareholder value preservation.

As Black Canyon advances its exploration and development programs, upcoming assay results and metallurgical testwork will be critical catalysts. These data points will help define the project's economic viability and inform next steps toward potential development.