Funding Push at Lucky Strike: Can Lefroy Sustain Momentum Into 2026?
Lefroy Exploration has received a second $0.75 million cash advance from BML Ventures, reinforcing its funding position ahead of key production milestones at the Lucky Strike Gold Project.
- Second $0.75 million cash advance received from BML Ventures
- Total funding drawn now $2 million of $2.5 million facility
- Mining operations underway with ore haulage targeted for January 2026
- Exploration activities set to escalate in first half of 2026
- Lucky Strike Gold Deposit holds 79,600 ounces of gold resource
Funding Momentum at Lucky Strike
Lefroy Exploration Limited (ASX, LEX) has strengthened its financial footing with the receipt of a second cash advance installment of $0.75 million from BML Ventures Pty Ltd. This advance is part of a $2.5 million Profit Cash Advance Facility Agreement established in July 2025, designed to support the development and operations of the Lucky Strike Gold Project in Western Australia.
The recent advance notably exceeded the initially planned $0.5 million for this installment, reflecting an accelerated drawdown strategy to fund the company’s near-term operational and exploration ambitions. To date, Lefroy has drawn $2 million from the facility, leaving $0.5 million available for future use.
Operational Progress and Exploration Outlook
Mining activities at Lucky Strike commenced earlier this month, with pre-strip and mining operations now underway. Lefroy is on track to begin ore haulage in January 2026, followed by the processing of its first toll treatment ore parcel in February. These milestones mark significant progress toward commercial production and revenue generation.
CEO Graeme Gribbin emphasized the strategic collaboration with BML Ventures, highlighting that the funding ensures Lefroy remains fully financed until the first profit-share cash flows are received in the first half of 2026. This financial security enables the company to significantly ramp up exploration efforts across its portfolio, with a full calendar of targets planned to be funded from Lucky Strike’s profits.
Resource Base and Strategic Positioning
The Lucky Strike Gold Deposit boasts a mineral resource estimate of approximately 79,600 ounces of gold, combining indicated and inferred categories. This resource underpins Lefroy’s low-cost production strategy, which leverages profit-sharing agreements to minimize upfront capital expenditure and operational risk.
Beyond Lucky Strike, Lefroy’s broader Lefroy Project includes other promising deposits such as Mt Martin and Burns Central, which collectively hold over half a million ounces of gold. These assets present further opportunities for similar profit-sharing arrangements and resource growth through ongoing exploration.
With a contiguous land package in the prolific Kalgoorlie and Kambalda gold districts, Lefroy is well positioned to capitalize on its zero-cost development pathway and generate sustainable cash flow as it advances its portfolio.
Bottom Line?
Lefroy’s strengthened funding and operational momentum at Lucky Strike set the stage for a pivotal 2026, with exploration results and profit-share cash flows poised to shape its next growth phase.
Questions in the middle?
- When exactly will Lefroy receive the first profit-share cash distributions from Lucky Strike?
- How will the remaining $0.5 million cash advance be deployed across exploration and operations?
- What are the potential impacts of gold price fluctuations on Lefroy’s profit-sharing agreements?
