Lefroy Nets $1.25M First Instalment from $2.5M BML Funding Facility
Lefroy Exploration has received the first $1.25 million cash advance from BML Ventures, strengthening its financial position ahead of key development milestones at the Lucky Strike and Burns Central gold projects.
- Received $1.25 million first instalment from $2.5 million facility
- Funding supports exploration and development at Lucky Strike and Burns Central
- Profit-share distributions expected in early 2026
- Earthworks and pre-strip at Lucky Strike targeted for December 2025
- Facility includes three further instalments across FY26
Funding Milestone Strengthens Lefroy's Position
Lefroy Exploration Limited (ASX, LEX) has taken a significant step forward by securing the first cash advance instalment of $1.25 million from BML Ventures Pty Ltd under their Profit Cash Advance Facility Agreement. This advance, which exceeds the initially planned $1 million by 25%, marks the beginning of a $2.5 million funding commitment designed to underpin Lefroy's exploration and development activities through FY26.
Backing the Lucky Strike and Burns Central Projects
The injection of capital arrives at a critical juncture as Lefroy prepares to ramp up operations at its flagship Lucky Strike Gold Project. With earthworks and pre-strip activities scheduled to commence in the December quarter of 2025, the funding ensures the company is well-positioned to meet these operational milestones. Additionally, resource extension drilling at the Burns Central high-grade gold project is set to begin in October 2025, supported by this financial boost.
Strategic Partnership with BML Ventures
The partnership with BML Ventures, a respected mining contractor based in Kalgoorlie, continues to be a cornerstone of Lefroy's strategy. The profit-share agreement, established earlier in 2025, provides a pragmatic funding solution that aligns the interests of both parties. Lefroy CEO Graeme Gribbin highlighted the importance of this collaboration in maintaining a strong cash position as the company approaches production phases.
Looking Ahead to Production and Profit Sharing
With a Mineral Resource Estimate of approximately 79,600 ounces at Lucky Strike and additional resources at Burns Central and Mt Martin, Lefroy is advancing a low-cost gold production strategy. The company anticipates profit-share distributions from Lucky Strike to commence in the first half of 2026, signaling a transition from exploration to revenue generation. The remaining three instalments of the facility, totaling $1.25 million, are scheduled for release across the December, March, and June quarters of FY26, providing ongoing financial support.
Broader Implications for Lefroy's Growth
This funding milestone not only secures immediate operational needs but also reinforces Lefroy's broader growth ambitions within the prolific Kalgoorlie and Kambalda gold districts. With over one million ounces in resources and a zero-cost development pathway, the company is well-placed to capitalize on its portfolio through further exploration and profit-share agreements.
Bottom Line?
Lefroy’s strengthened cash position and strategic partnership set the stage for a pivotal year ahead as it transitions toward production and profit sharing.
Questions in the middle?
- How will the timing and success of drilling at Burns Central influence Lefroy’s resource growth?
- What are the risks and contingencies if earthworks at Lucky Strike face delays?
- How might fluctuations in gold prices impact the profitability of the profit-share agreement with BML?
