LinQ Minerals has raised A$15.4 million through a strongly supported institutional placement to accelerate drilling at its Gilmore Gold-Copper Project. The capital injection comes with attaching options and sets the stage for intensified exploration activity.
- A$15.4 million raised via oversubscribed institutional placement
- Placement price at A$0.55 per share, a 14.7% discount to last close
- Funds earmarked to accelerate drilling with up to three rigs at Gilmore
- Attaching options issued at A$0.78 exercise price, expiring in two years
- Second tranche subject to shareholder approval in late March
Strong Institutional Backing
LinQ Minerals Limited (ASX – LNQ) has successfully raised A$15.4 million through a heavily oversubscribed institutional placement, signalling robust confidence from both domestic and global investors. The placement was priced at A$0.55 per share, representing a notable 14.7% discount to the company’s last closing price, a common feature in capital raises designed to attract strong demand.
Executive Chair Clive Donner highlighted the strategic nature of the placement, noting it as a validation of LinQ’s exploration strategy. The capital injection will enable the company to accelerate its drilling program at the Gilmore Gold-Copper Project, a key asset in its portfolio.
Accelerated Drilling Plans
The proceeds are earmarked primarily for aggressive exploration activities, including extensional, resource, and high-value target drilling. LinQ plans to mobilise two drill rigs to the Gilmore site imminently, with a third rig expected to join operations within the current quarter. This ramp-up in drilling activity reflects the company’s commitment to advancing its resource definition and potentially expanding the project’s footprint.
With a post-placement cash position of approximately A$20 million, LinQ is well-positioned to fund these initiatives without immediate capital constraints. Technical Director John Holliday’s personal subscription of A$100,000 further underscores internal confidence in the project’s prospects.
Placement Structure and Shareholder Considerations
The placement involves issuing roughly 28 million new shares, with the first tranche of approximately 26.4 million shares to settle by early February under existing placement capacity. The second tranche, comprising about 1.6 million shares, awaits shareholder approval at a general meeting scheduled for late March.
Investors participating in the placement will also receive attaching options on a one-for-two basis, exercisable at A$0.78 and expiring two years from issue. These options provide additional upside potential for investors, albeit introducing some dilution risk for existing shareholders.
Market Implications and Outlook
The successful placement and planned drilling acceleration could materially influence LinQ’s valuation trajectory, especially if upcoming drilling results confirm or expand the resource base. However, the market will be watching closely for shareholder approval outcomes and the company’s ability to deliver timely, positive exploration results.
Joint Lead Managers Bell Potter Securities and Alpine Capital facilitated the placement, ensuring the transaction met market standards and investor expectations. As LinQ moves forward, the next few months will be critical in translating this capital raise into tangible exploration progress.
Bottom Line?
LinQ’s fresh capital injection sets the stage for a pivotal drilling phase, but shareholder approval and drilling outcomes will be key to sustaining momentum.
Questions in the middle?
- Will shareholders approve the second tranche and attaching options in March?
- How will the accelerated drilling impact resource estimates at Gilmore?
- What market reaction will follow the release of upcoming drilling assay results?