Superior Resources Secures $1.75m to Boost Gold and Copper Drilling at Greenvale
Superior Resources has raised $1.75 million to fund a major drilling campaign aimed at expanding its gold resource and advancing feasibility studies for near-term production at its Greenvale Project in northern Queensland.
- Placement raises $1.75 million at a 31.8% discount
- 3,000m drilling program planned at Steam Engine Gold Project
- Feasibility studies focus on toll-treatment for early gold production
- Exploration and drilling to commence at high-grade Telegraph and Halls Reward copper prospects
- Funding supports resource growth and advancing near-term production plans
Funding Secured to Accelerate Exploration
Superior Resources Limited (ASX, SPQ) has successfully raised $1.75 million through a placement to sophisticated investors, including new and existing wholesale, high net worth, and institutional participants. The capital raise, priced at $0.0075 per share, a discount of nearly 32% to the last closing price, will underpin a significant drilling and feasibility push at the company’s Greenvale Project in northern Queensland.
Targeting Growth at Steam Engine Gold Project
The primary focus of the funding is a 3,000-metre reverse circulation drilling program at the wholly owned Steam Engine Gold Project. This program aims to expand the current JORC Mineral Resource of 194,000 ounces of gold, with the company optimistic about delivering meaningful resource growth. Parallel to drilling, feasibility studies are advancing with an emphasis on a toll-treatment development pathway. This approach could enable early-stage gold production with relatively low upfront capital expenditure, potentially accelerating cash flow generation.
Exploration of High-Grade Copper Prospects
Beyond gold, Superior Resources is preparing soil and geophysical surveys, followed by drilling programs at the Telegraph and Halls Reward copper prospects. These sites have previously yielded exceptionally high-grade rock chip assays, with copper concentrations reaching up to 46.5%. The company views these prospects as large-scale, high-potential opportunities that complement the gold-focused initiatives at Steam Engine.
Strategic Positioning in a Strong Market
Managing Director Peter Hwang highlighted the strong market interest in both gold and copper, noting that the timing of the placement is advantageous given current commodity prices. The Greenvale Project’s extensive 150-kilometre strike length hosts multiple exploration targets, positioning Superior Resources well for long-term growth. The company’s strategy balances near-term production ambitions with the exploration upside of its broader tenement holdings.
Placement Details and Next Steps
The placement shares are expected to be issued around 18 December 2025, with attaching options subject to shareholder approval. If approval is not granted, the company will compensate participants for the value of the options. Lead manager GBA Capital Pty Ltd will receive a 6% fee on funds raised and broker options, also subject to approval. Investors and analysts will be watching closely for drilling results and feasibility study updates, which will be critical in validating the company’s growth and production potential.
Bottom Line?
Superior Resources’ fresh capital injection sets the stage for a pivotal phase of exploration and feasibility work that could reshape its resource profile and production timeline.
Questions in the middle?
- Will the upcoming drilling at Steam Engine significantly increase the gold resource beyond current estimates?
- How will the feasibility study’s toll-treatment pathway impact the timeline and capital requirements for production?
- What are the potential implications if shareholder approval for attaching options is not obtained?
