Arika Resources has secured $5.7 million through a heavily oversubscribed placement to accelerate drilling at its Yundamindra and Kookynie gold projects in Western Australia, with directors committing $0.65 million themselves.
- Placement raised $5.7 million, oversubscribed
- Directors committed $0.65 million to the raise
- Funds to accelerate drilling at Yundamindra and Kookynie projects
- Over 20,000 metres drilled to date with assays pending
- Completion of Admiral Bay divestment adds ~$1.2 million
Capital Raising to Boost Exploration
Arika Resources Limited (ASX, ARI) has announced a $5.7 million share placement aimed at accelerating its drilling programs at the strategically important Yundamindra and Kookynie gold projects in Western Australia's Leonora-Laverton district. The placement, which was significantly oversubscribed, attracted strong interest from both new and existing sophisticated investors, including a $0.65 million commitment from the company's directors, signaling robust internal confidence in the projects' potential.
Exploration Progress and Focus Areas
Since mid-2025, Arika has drilled over 20,000 metres across its flagship projects, with assays awaited for 37 holes totaling approximately 5,500 metres at the Pennyweight Point prospect. This drilling campaign is part of a broader strategy to define resources and identify new discoveries within these under-explored gold assets. The company's technical team, led by consultant Steve Vallance, has sharpened its understanding of the geological opportunities, focusing near-term efforts on the Pennyweight Point and Landed at Last prospects, which are considered the most promising for resource definition and discovery success.
Financial and Strategic Implications
The placement was conducted in two tranches, with the first tranche raising approximately $5 million under existing placement capacity and the second tranche, including the directors' participation, subject to shareholder approval. The issue price of $0.024 per share represents a 15.1% discount to the recent volume-weighted average price, reflecting a strategic balance between raising capital and shareholder value preservation. Additionally, the recent completion of the Admiral Bay divestment has bolstered Arika's financial position by approximately $1.2 million, further supporting its exploration ambitions.
Looking Ahead
Managing Director Justin Barton expressed optimism about the upcoming months, highlighting the exciting phase of drilling underway and the company's commitment to unlocking value for shareholders. With multiple priority targets lined up, Arika is positioning itself to capitalize on the significant gold potential within its tenements. The success of this capital raising and the ongoing exploration results will be critical in shaping the company's trajectory in 2026 and beyond.
Bottom Line?
Arika’s oversubscribed raise and active drilling set the stage for a pivotal year in unlocking Leonora’s gold potential.
Questions in the middle?
- What will the upcoming assay results reveal about the Pennyweight Point prospect?
- How will shareholder approval of the second tranche impact the company’s capital structure?
- What are the timelines and targets for resource definition at Landed at Last?