Cazaly Resources Secures $3.5M to Boost Goongarrie Gold Drilling
Cazaly Resources has raised $3.5 million through a strongly supported placement to accelerate reverse circulation drilling at its Goongarrie Gold Project in Western Australia. The capital injection positions the company to expand exploration efforts and advance key targets in a promising gold region.
- Placement raises $3.5 million at $0.03 per share
- Managing Director subscribes for $100,000, pending shareholder approval
- Cash reserves to increase to approximately $5.6 million
- Funds earmarked for expanded RC drilling and exploration at Goongarrie
- Joint Lead Managers Euroz Hartleys and Canaccord Genuity oversee placement
Strong Capital Raise Reflects Investor Confidence
Cazaly Resources Limited (ASX – CAZ) has successfully secured binding commitments for a $3.5 million placement, issuing approximately 116.7 million new shares at 3 cents each. This capital raise, well supported by both new and existing sophisticated investors, underscores growing market confidence in the company’s Goongarrie Gold Project, located in Western Australia’s northeastern goldfields.
Managing Director Tara French highlighted the placement’s strong demand as a clear endorsement of Cazaly’s disciplined exploration strategy and the significant potential of the Goongarrie asset. French also announced her personal commitment to subscribe for $100,000 worth of shares, subject to shareholder approval, signaling management’s alignment with shareholder interests.
Funding Exploration and Drilling Acceleration
The proceeds from the placement will bolster Cazaly’s cash reserves to around $5.6 million, providing a robust financial platform to accelerate reverse circulation (RC) drilling campaigns. These drilling programs aim to expand known gold mineralisation trends and explore the broader Bardoc Tectonic Zone, a region with promising geological characteristics.
Beyond drilling, the funds will support ongoing project-scale exploration activities designed to generate new gold targets, as well as provide working capital for corporate and project generation efforts. This comprehensive use of funds reflects Cazaly’s commitment to advancing its portfolio methodically while maintaining operational flexibility.
Placement Structure and Governance
The placement shares will be issued under ASX Listing Rules 7.1 and 7.1A, with settlement expected by late November 2025. Joint Lead Managers Euroz Hartleys Limited and Canaccord Genuity (Australia) Limited are managing the placement, which includes broker options exercisable at 4.5 cents and expiring three years from issue, pending shareholder approval early next year.
Notably, Barclay Wells Limited, linked to Cazaly Non-Executive Director Terry Gardiner, will participate in the placement and receive selling fees and broker options, reflecting a close but transparent relationship. The placement is not underwritten, indicating strong investor appetite without the need for guaranteed underwriting support.
Looking Ahead
This capital raise marks Cazaly’s first equity funding since November 2023 and positions the company to accelerate its exploration momentum at Goongarrie. With drilling programs set to deepen and expand, the market will be watching closely for assay results and any new discoveries that could enhance the project’s value and Cazaly’s growth trajectory.
Bottom Line?
Cazaly’s fresh capital injection sets the stage for a pivotal phase in its Goongarrie exploration journey, with drilling results poised to shape its near-term outlook.
Questions in the middle?
- What initial results can investors expect from the accelerated RC drilling program?
- How might the broker options impact shareholder dilution if exercised?
- What are the key geological targets within the Bardoc Tectonic Zone that Cazaly aims to unlock?
