SNX Faces Funding Crunch Amid Saudi Arabia Tender and Nevada Exploration Push

• Qualified bidder status for Saudi Arabia exploration licenses
• Mining permit granted for New Pass Gold Project in Nevada
• High-grade gold sampling up to 42.1g/t at Warrior and New Pass projects
• A$9.65 million placement secured, pending shareholder approval
• Former De Grey Mining Chairman Simon Lill appointed Non-Executive Chairman

Strategic Expansion into Saudi Arabia

Sierra Nevada Gold Inc. (ASX – SNX) has taken a significant step towards expanding its footprint beyond Nevada by securing qualified bidder status to participate in the Kingdom of Saudi Arabia's (KSA) Ministry of Industry and Mineral Resources tender rounds. This opportunity aligns with Saudi Vision 2030, aiming to boost the mining sector. SNX’s technical team, with deep KSA geological expertise and a track record of success, is actively bidding on several highly prospective gold and copper exploration blocks. The final results of this bidding round are expected soon, with the company optimistic about securing meaningful projects.

Nevada Projects Deliver High-Grade Gold Results

Back in Nevada, SNX continues to build momentum at its flagship New Pass and Warrior gold projects. The company recently received a mining permit to reopen the New Pass Mine, enabling it to proceed with a planned test mining program pending final operational permits. Geological studies have revealed multiple high-grade quartz veins, including a standout 39.8 grams per tonne gold sample from laminated quartz veins and a newly identified sub-parallel vein returning 23.3 grams per tonne. These findings have expanded the exploration search space and refined targeting for bulk sampling.

At the Warrior Project, located in the prolific Walker Lane Trend, SNX reported exceptional rock chip samples with grades up to 42.1 grams per tonne gold. The project exhibits classic characteristics of a large epithermal gold system, with recent fieldwork and geophysical surveys enhancing drill targeting. Drilling is anticipated imminently, aiming to unlock the potential of this underexplored system.

Capital Raising and Leadership Refresh

To fund its ambitious exploration and development plans, SNX secured firm commitments for a A$9.65 million placement at a 25% discount to the last traded price, subject to shareholder approval at an upcoming Extraordinary General Meeting. The proceeds will support drilling and exploration at New Pass, Warrior, and the Blackhawk epithermal silver project, as well as business development activities in Saudi Arabia.

In a notable board change, former De Grey Mining Chairman Simon Lill has joined SNX as Non-Executive Chairman. Mr. Lill brings over 30 years of experience and was instrumental in De Grey’s transformation into an ASX 200 company and its subsequent $6 billion takeover by Northern Star Resources. Executive Chairman Peter Moore has transitioned to an Executive Director role, signaling a strategic leadership refresh as SNX enters its next growth phase.

Financial Position and Outlook

SNX reported cash outflows from operating and investing activities during the quarter, with cash reserves at US$221,000. The company acknowledges the limited runway but expects to sustain operations and meet business objectives through the successful completion of the placement. The market will be watching closely as SNX advances drilling programs and awaits the outcome of its Saudi Arabia bids.

Bottom Line?

SNX’s dual-track strategy of advancing Nevada projects while pursuing Saudi Arabia licenses, backed by fresh capital and leadership, sets the stage for a pivotal year ahead.

Questions in the middle?

• Will SNX secure exploration licenses in Saudi Arabia and how will this reshape its portfolio?
• How will the upcoming bulk sampling and drilling results at New Pass and Warrior impact resource estimates?
• What market reaction will the discounted placement and board changes provoke among shareholders?