REZ Secures $2M to Accelerate East Menzies Gold Growth
Resources & Energy Group Limited has raised $2 million to fund drilling and production expansion at its East Menzies Gold Project, following a year of significant operational milestones.
- Placement raises $2 million at $0.014 per share with 1-for-2 attaching options
- Funds to support drilling, resource expansion, and vat-leach processing upgrades
- East Menzies project achieved three gold pours and 40,000-tonne processing approval in 2025
- Gigante Grande maiden mineral resource established with significant exploration upside
- Directors to receive shares in lieu of fees, subject to shareholder approval
Capital Raise to Fuel Growth
Resources & Energy Group Limited (ASX, REZ) has successfully completed a $2 million placement, issuing over 142 million shares at $0.014 each, accompanied by options exercisable at $0.04. This capital injection is earmarked to advance drilling programs, expand mineral resources, and enhance production capabilities at the East Menzies Gold Project in Western Australia.
Building on a Pivotal Year
The funding follows a transformative 2025 for REZ, highlighted by three successful gold pours that transitioned the company from trial operations to commercial production. A key milestone was securing approval for processing up to 40,000 tonnes via onsite vat-leach technology at the Maranoa site, positioning REZ to reduce reliance on third-party milling and accelerate gold recovery cycles.
Resource Expansion and Exploration Upside
Central to the company’s growth strategy is the Gigante Grande deposit, where REZ established a maiden inferred mineral resource of 1.39 million tonnes grading 0.91 grams per tonne gold, equating to approximately 40,700 ounces. The deposit remains open along strike and at depth, with an exploration target suggesting potential for up to 550,000 ounces. Drilling is set to commence in late January 2026, aiming to expand this resource and unlock further value.
Broader Project Pipeline and Future Plans
Beyond Gigante Grande, the East Menzies camp includes multiple deposits such as Maranoa, Goodenough, and Granny Venn, each offering near-term production opportunities. Notably, Granny Venn has previously delivered strong revenue and project profit. REZ is also advancing plans for a modular carbon-in-leach/carbon-in-pulp gold mill at Granny Venn, which could scale production across the consolidated tenement package.
Governance and Shareholder Considerations
The placement attracted support from both new and existing sophisticated investors, with Whairo Capital acting as sole lead manager. Directors will receive shares in lieu of fees on the same terms, subject to shareholder approval. The issuance of attaching options to investors, directors, and Whairo Capital also awaits approval, which will shape the company’s capital structure moving forward.
Looking Ahead
With a strengthened balance sheet and operational momentum, REZ enters 2026 poised to deliver on its exploration and production targets. The upcoming drilling campaign and processing upgrades will be critical to validating the company’s growth trajectory and unlocking shareholder value.
Bottom Line?
REZ’s $2 million raise sets the stage for a decisive drilling season and production ramp-up at East Menzies.
Questions in the middle?
- Will shareholder approval for the attaching options proceed smoothly?
- How quickly can drilling results at Gigante Grande translate into resource upgrades?
- What are the timelines and capital requirements for the proposed modular gold mill?
