Gateway Mining Secures $22.5M to Accelerate Yandal Gold Drilling
Gateway Mining has raised $22.5 million in a heavily supported placement to fund aggressive exploration at its Yandal Gold Project and initial work at Glenburgh South. The capital boost strengthens its balance sheet and underpins extensive drilling campaigns starting October 2025.
- Placement raised $22.5 million from institutional and existing investors
- Directors and related parties committed $1.675 million, including $1 million from Executive Chairman
- Funds to support large-scale drilling and exploration at Yandal and Glenburgh South projects
- Shares issued at a 15.4% discount to last closing price
- Lead manager to receive 20 million unlisted options as part of the deal
Strong Capital Raise Signals Confidence
Gateway Mining Limited (ASX, GML) has successfully secured $22.5 million through a share placement, reflecting robust investor confidence in the company’s exploration strategy. The placement attracted strong demand from both existing shareholders and new institutional investors, underscoring the market’s positive view of Gateway’s flagship Yandal Gold Project in Western Australia.
Notably, the company’s directors and related parties have committed $1.675 million to the raising, with Executive Chairman Andrew Bray personally subscribing for $1 million, signaling strong internal alignment with the company’s growth plans.
Funding Aggressive Exploration and Drilling
The proceeds will fund an aggressive exploration and drilling program at Yandal, including a 25,000-metre aircore campaign targeting key shear zones, as well as reverse circulation and diamond drilling at multiple prospects. These efforts aim to build on promising results to date and unlock further value from the project’s high-quality gold targets.
In addition to Yandal, Gateway will initiate exploration activities at its recently acquired Glenburgh South Project, expanding its footprint in Western Australia’s mineral-rich landscape. The capital raise also supports ongoing geochemical and geophysical surveys across the portfolio, enhancing the company’s ability to identify new targets.
Balance Sheet Strengthened for Growth
Prior to the placement, Gateway held approximately $12.1 million in cash and liquid securities. The new funds significantly bolster the company’s financial position, providing a solid foundation to execute its exploration programs without immediate capital constraints.
The placement shares were issued at $0.055 each, representing a 15.4% discount to the last closing price, a common practice to incentivize investor participation in such raisings. Additionally, the lead manager, JP Equity Partners, will receive 20 million unlisted options exercisable at $0.10 over three years, aligning their interests with Gateway’s future performance.
Looking Ahead
With drilling scheduled to commence in early October 2025, Gateway is poised to rapidly advance its exploration agenda. The company’s strengthened balance sheet and expanded project portfolio position it well to capitalize on Western Australia’s prolific gold province. Investors will be watching closely for upcoming drilling results that could validate the company’s strategic direction and unlock further value.
Bottom Line?
Gateway’s capital raise sets the stage for a pivotal exploration phase that could redefine its growth trajectory.
Questions in the middle?
- Will shareholder approval for director-related share issuance proceed smoothly?
- How will initial drilling results at Glenburgh South influence Gateway’s project prioritization?
- What market reaction will follow as Gateway reports progress on its aggressive exploration programs?
