How Norwest’s $3M ATM Deal Could Unlock Bulgera’s Potential
Norwest Minerals has entered a three-year At-The-Market equity subscription agreement with Dolphin Corporate Investments, unlocking up to $3 million in standby capital to support its Bulgera Gold project and ongoing operations.
- Up to $3 million standby equity capital over three years
- Flexible, cost-effective funding with no obligation to draw
- No attaching options or rights, minimal dilution control
- 51.4 million shares issued as security to Dolphin Corporate
- Facility supports Bulgera Heap Leach Study and operating costs
Strategic Funding Flexibility for Norwest Minerals
Norwest Minerals Limited (ASX, NWM) has taken a significant step to bolster its financial flexibility by entering into an At-The-Market (ATM) Subscription Agreement with Melbourne-based Dolphin Corporate Investments. The agreement provides Norwest with access to up to $3 million in standby equity capital over the next three years, offering a nimble and cost-effective funding mechanism.
Unlike traditional equity placements, this ATM facility grants Norwest full discretion over if, when, and how much capital to raise, including the ability to set a minimum issue price. Importantly, the arrangement carries no obligation to draw funds and does not include attaching options or rights, which helps to minimise shareholder dilution and preserve value.
Security Shares and Capital Management
As part of the agreement, Norwest has issued 51.4 million fully paid ordinary shares to Dolphin Corporate Investments as security. These shares were placed from Norwest’s existing Listing Rule 7.1 capacity at nil cash consideration. The company retains the option to buy back and cancel these shares upon termination or maturity of the ATM facility, subject to shareholder approval, providing a pathway to unwind this security if the facility is no longer needed.
Supporting Key Projects and Operational Needs
Chief Executive Officer Charles Schaus emphasised the strategic value of the ATM facility, noting it will assist in managing financial commitments related to Norwest’s flagship Bulgera Gold project. The company is currently evaluating the Bulgera deposit as a 1 million tonnes per annum heap leach operation, with recent drilling confirming mineralisation extends beyond the current 290,000-ounce resource estimate.
With ongoing assay results expected soon, a new mineral resource estimate is anticipated in early 2026. Meanwhile, the ATM facility provides a financial buffer to support the heap leach study and associated operating costs, ensuring Norwest can progress its development plans without immediate capital pressure.
A Complementary Funding Tool
Mr Schaus described the ATM agreement as a complementary funding option alongside previous capital raising efforts, highlighting Dolphin Corporate Investments as a trusted partner. The flexibility to raise capital on favourable terms when market conditions are suitable positions Norwest well to navigate the uncertainties typical of junior mining exploration and development.
Overall, this facility underscores Norwest’s proactive approach to capital management, balancing the need for financial resources with shareholder interests and project advancement.
Bottom Line?
Norwest’s new ATM facility offers a strategic funding lifeline, but investors will watch closely for actual drawdowns and their impact on dilution.
Questions in the middle?
- When and under what market conditions will Norwest choose to utilise the ATM facility?
- How will the issuance of security shares affect shareholder value if the facility is drawn upon?
- What updates will the upcoming Bulgera mineral resource estimate bring, and how might that influence capital needs?
