Pacgold Limited has raised $13 million through a two-tranche placement to acquire and restart the White Dam Gold Project, aiming for near-term production and exploration growth.
- Firm commitments for $13 million placement via 173.3 million new shares
- Funds to acquire and restart White Dam Gold Project in South Australia
- Placement structured in two tranches, second tranche pending shareholder approval
- Proceeds also to advance exploration at North Queensland gold-antimony projects
- Directors to participate with $515,000 subscription subject to approval
Strategic Capital Raise
Pacgold Limited (ASX, PGO) has successfully secured firm commitments for a $13 million capital raising through the issuance of 173.3 million new shares. This two-tranche placement is designed to fund the acquisition and restart of the White Dam Gold Project in South Australia, alongside advancing exploration efforts in its North Queensland gold-antimony portfolio.
Reviving White Dam, A Near-Term Production Opportunity
The White Dam Gold Project offers Pacgold a rare opportunity to fast-track gold production with existing infrastructure, including an operational heap leach pad and extraction plant. The project’s established JORC Resource and remaining gold in the heap leach position it well for a rapid restart with relatively low capital expenditure, a significant advantage in the current favourable gold price environment.
Managing Director Matthew Boyes highlighted the transformational nature of this acquisition, emphasizing its role in diversifying Pacgold’s portfolio and creating a pathway to near-term cash flow generation. The project’s proximity to Broken Hill and its comprehensive facilities provide a solid foundation for operational success.
Placement Structure and Shareholder Engagement
The placement is split into two tranches, the first tranche, raising approximately $3.5 million, will be settled under existing placement capacities, while the second tranche, expected to raise $9.5 million, awaits shareholder approval at the upcoming Annual General Meeting scheduled for 17 November 2025. Directors have expressed confidence in the deal by committing to subscribe for $515,000 worth of shares, subject to approval.
Joint Lead Managers Bell Potter Securities and Taylor Collison facilitated the placement, receiving a combination of cash fees and options as part of their remuneration. The timetable anticipates the settlement and trading commencement of tranche one shares by mid-October, with tranche two following post-approval in November.
Balancing Production and Exploration Ambitions
Beyond White Dam, Pacgold plans to channel funds into advancing exploration at its North Queensland projects, including the Alice River and St George Gold-Antimony projects. These assets lie within a mineral-rich province known for multi-million-ounce gold deposits, offering substantial growth and discovery potential.
This dual focus on near-term production and longer-term exploration underscores Pacgold’s strategy to build a balanced portfolio that can deliver both immediate returns and sustained value creation for shareholders.
Bottom Line?
Pacgold’s $13 million raise sets the stage for a swift White Dam restart, but shareholder approval remains the key next hurdle.
Questions in the middle?
- Will shareholder approval be secured to complete the full $13 million placement?
- How quickly can Pacgold ramp up production at White Dam after acquisition?
- What exploration results can be expected from North Queensland projects in the near term?