Why Did Pacgold’s Shares Surge? Inside the White Dam Acquisition

Background to the Trading Activity

Pacgold Limited (ASX, PGO) recently experienced a notable spike in its share price and trading volume, prompting the Australian Securities Exchange (ASX) to issue a price query. The company’s shares rose from a low of $0.066 on 1 October 2025 to an intra-day high of $0.095 on 2 October 2025, accompanied by a significant increase in trading activity. This unusual market behaviour raised questions about whether Pacgold was in possession of material information not yet disclosed to the market.

Disclosure of Acquisition Negotiations

In response, Pacgold confirmed it had been engaged in confidential and incomplete negotiations to acquire the White Dam Gold Operation from GBM Resources Ltd. At the time of the ASX’s inquiry, the terms of the transaction were still being finalised and remained confidential under Listing Rule 3.1A, which allows companies to withhold information if confidentiality is maintained. However, following the ASX query and the surge in share price and volume, Pacgold requested a trading halt and accelerated negotiations to finalise the deal.

Finalisation and Announcement

The acquisition terms were agreed upon on 5 October 2025, with the parties exchanging a binding share sale agreement. Pacgold promptly released an announcement detailing the acquisition of the White Dam Gold Operation. Alongside this, the company revealed its intention to undertake a capital raising via a placement to professional and sophisticated investors, aimed at funding the acquisition and supporting future growth.

Compliance and Market Integrity

Pacgold assured the market that it had complied fully with ASX Listing Rules, particularly continuous disclosure obligations under Listing Rule 3.1. The company stated there had been no breaches of confidentiality or leaks prior to the announcement, and that the board had authorised the responses to the ASX price query. This transparency is crucial in maintaining investor confidence, especially amid significant corporate developments.

Looking Ahead

The acquisition of White Dam represents a strategic expansion for Pacgold, potentially enhancing its gold production profile. The forthcoming capital raising will be closely watched by investors as an indicator of the company’s financial strategy and capacity to integrate the new asset. Market participants will be eager to see further details on the acquisition’s financial terms and operational plans, which will shape Pacgold’s outlook in the competitive gold mining sector.