St Barbara Raises A$58M at 9.7% Discount to Fund Key Expansion Projects
St Barbara Limited has raised A$58 million through an institutional placement to fund key growth initiatives including the Simberi mobile fleet expansion and the 15-Mile Processing Hub pre-feasibility study.
- A$58 million raised via institutional placement at A$0.46 per share
- Placement oversubscribed with strong domestic and international investor demand
- Funds allocated to Simberi mobile fleet expansion and feasibility studies
- Advancement of Pre-Expansion Growth Capital and 15-Mile Processing Hub study
- Plans progressing for potential re-opening of Touquoy stockpile processing in Nova Scotia
Capital Raise to Fuel Growth
St Barbara Limited (ASX – SBM) has successfully secured firm commitments for an institutional placement raising A$58 million at an issue price of A$0.46 per share, representing a 9.7% discount to the recent 10-day volume weighted average price. The placement was notably oversubscribed, reflecting strong confidence from both existing and new institutional investors across Australia and internationally.
Strategic Deployment of Funds
The capital raised will underpin several critical projects aimed at expanding St Barbara’s operational footprint and enhancing efficiency. Key among these is the acceleration of the Simberi mobile fleet expansion and conversion, a move designed to improve operational reliability and productivity at the Papua New Guinea gold mining site. Additionally, the funds will support the finalisation of the Simberi Expansion Project Feasibility Study and advance Pre-Expansion Growth Capital initiatives.
Exploring New Horizons in Nova Scotia
Beyond Simberi, St Barbara is progressing the Pre-Feasibility Study for the 15-Mile Processing Hub in Nova Scotia, with results expected in the March quarter of 2026. This study is a pivotal step towards unlocking further value in the Atlantic region. The company is also advancing plans for the potential re-opening of the Touquoy site for stockpile processing, signaling a strategic intent to leverage existing assets and extend mine life.
Market Reception and Next Steps
The placement shares are expected to settle on 10 October 2025 and commence trading on 13 October 2025. The strong demand and oversubscription underscore investor appetite for St Barbara’s growth strategy and operational expansion. As the company moves forward with these projects, market participants will be keenly watching for updates on feasibility outcomes and operational milestones.
Bottom Line?
St Barbara’s capital raise sets the stage for transformative growth, but execution risks and project timelines remain key watchpoints.
Questions in the middle?
- What are the detailed timelines and expected returns for the Simberi Expansion Project?
- How will the potential re-opening of Touquoy impact St Barbara’s production profile and costs?
- What risks could delay or alter the outcomes of the 15-Mile Processing Hub feasibility study?