Yugo Metals Raises $3.5M to Unlock Gold Potential at Sinjakovo
Yugo Metals has raised $3.5 million through a discounted placement to fund its first-ever diamond drilling program targeting gold anomalies at the Sinjakovo Project, with drilling set to commence in November 2025.
- Placement of 77.8 million shares at 4.5 cents each, a 16.67% discount
- Funds to support phase 1 diamond drilling and geological work at Sinjakovo
- Drilling aims to validate strong trenching and sampling gold results
- Placement includes free attaching options subject to shareholder approval
- Ongoing optimism around regulatory approval for Sockovac Project
Capital Raise to Kickstart Drilling
Yugo Metals Limited (ASX, YUG) has successfully secured firm commitments for a $3.5 million placement, pricing shares at 4.5 cents each, a notable 16.67% discount to the last closing price. This capital injection is earmarked primarily to fund the initial phase of a diamond drilling program at the Sinjakovo Project, marking the company’s first-ever drilling campaign focused on defined gold targets within this promising exploration area.
Exploration Strategy and Targets
The planned 1,000-metre drilling program is designed to test gold anomalies previously identified through trenching and rock chip sampling, which returned encouraging results such as 61 metres at 1.5 grams per tonne gold and rock chips grading up to 8 grams per tonne gold. Complementary geophysical surveys have revealed strong chargeability anomalies, reinforcing the potential for a structurally controlled epithermal gold-antimony system. The program will begin with eight shallow drill holes, followed by deeper holes informed by initial findings.
Placement Details and Shareholder Engagement
The placement will be executed in two tranches, the first tranche of approximately 30.7 million shares will be issued under existing ASX Listing Rule capacities, while the second tranche of 23.6 million shares awaits shareholder approval at the upcoming Annual General Meeting on 28 November 2025. Investors participating in the placement will also receive free attaching options exercisable at 10 cents each, valid for three years, pending shareholder consent.
Broader Company Outlook
Beyond Sinjakovo, Yugo Metals remains engaged with the Ministry of Energy and Mining regarding the renewed grant application for the Sockovac (Petrovo) Project. The company expresses optimism about a favorable outcome in the near term, which could further enhance its project portfolio. Meanwhile, the funds raised will also support assay testing, geological modelling, and general working capital needs, positioning Yugo Metals to advance its exploration ambitions efficiently.
Bottom Line?
Yugo Metals’ upcoming drilling at Sinjakovo will be a critical test of its gold potential and a key catalyst for the company’s next growth phase.
Questions in the middle?
- Will the phase 1 drilling confirm the high-grade gold anomalies indicated by trenching and sampling?
- How will shareholders respond to the approval request for the second tranche of the placement and the attaching options?
- What is the timeline and likelihood of regulatory approval for the Sockovac Project renewal?
