How Will Litchfield’s $6M Boost Accelerate Oonagalabi’s Copper-Zinc Quest?

Strong Institutional Backing for Exploration Push

Litchfield Minerals Limited (ASX, LMS) has successfully raised $6 million through an oversubscribed placement to a select group of institutional and sophisticated investors. The placement, priced at $0.60 per share; a notable 17.8% discount to the last closing price; reflects strong market confidence in the company’s exploration strategy at its flagship Oonagalabi copper-zinc prospect in the Northern Territory.

The capital injection will enable Litchfield to accelerate its systematic exploration program, including advanced geophysical surveys and targeted drilling campaigns designed to better understand the scale and complexity of the mineralised system.

Unlocking the Potential of Oonagalabi

Oonagalabi has emerged as a highly prospective copper-zinc system, with recent drilling at key targets such as VT1 and the Bomb-Diggity cluster delivering encouraging signs of mineralisation. The VT1 target, characterised by a complex cluster of six conductive plates over 400 meters, is being tested with a data-driven approach to refine the geological model. Meanwhile, the Bomb-Diggity cluster benefits from multiple geophysical anomalies, including magnetic and gravity highs, which bolster confidence in its potential.

Litchfield’s Managing Director, Matthew Pushatya, expressed enthusiasm about the new funding and the validation it provides. He highlighted the company’s disciplined approach and the opportunity to deploy more sophisticated exploration techniques, including down-hole electromagnetic surveys, to systematically vector into higher-grade zones.

Strategic Use of Capital and Broker Options

The placement involved issuing 10 million shares, with a portion issued under Listing Rule 7.1 and the remainder under Listing Rule 7.1A. Additionally, 2 million broker options were granted with an exercise price of $0.90 and a three-year expiry, providing potential upside for investors and aligning interests with the company’s growth trajectory.

Settlement is scheduled for late October, positioning Litchfield to immediately ramp up exploration activities. The company plans to continue its methodical testing of the Oonagalabi system, integrating geophysical data and drilling results to build a cohesive geological model.

Looking Ahead

With the new capital in place, Litchfield is poised to intensify its exploration efforts, aiming to unlock the full potential of what may be a larger and more complex mineral system than previously understood. The ongoing drilling and geophysical surveys will be critical in validating the scale and grade of mineralisation, which could significantly enhance the company’s valuation and strategic positioning in the base metals sector.