Benz Mining Corp. has raised A$75 million through a bought deal placement, significantly strengthening its cash reserves to nearly A$94 million. This capital injection will accelerate exploration and resource development at its Glenburgh and Mt Egerton Gold Projects in Western Australia.
- A$75 million raised via bought deal placement at A$2.32 per CDI
- Strong demand from leading offshore institutional investors
- Pro-forma cash position boosted to approximately A$94 million
- Funds earmarked for expanded drilling and resource growth at Glenburgh and Mt Egerton
- Placement supported by existing substantial institutional shareholders
Capital Raising to Accelerate Exploration
Benz Mining Corp. (ASX – BNZ, TSXV – BZ) has announced a transformative capital raise, securing firm commitments to raise A$75 million through a bought deal placement priced at A$2.32 per CHESS Depositary Interest (CDI). This significant injection of funds is set to propel the company’s exploration activities, particularly at its Glenburgh and Mt Egerton Gold Projects in Western Australia.
The placement was driven by strong demand from two leading offshore institutional investors, including a global fund manager who acted as cornerstone investor, alongside continued support from Benz’s existing institutional shareholders. This broad backing underscores confidence in Benz’s aggressive exploration strategy and recent drilling successes.
Strengthened Financial Position
Following completion of the placement, Benz’s pro-forma cash position will stand at approximately A$94 million, up from around A$19 million prior to the raise. This robust balance sheet provides the company with the financial flexibility to significantly ramp up exploration efforts without immediate capital constraints.
Chairman Evan Cranston highlighted the transformational nature of the raise, noting that the funding will enable a step change in activity at Glenburgh, which is emerging as a compelling gold project on the ASX. The company plans to accelerate resource growth, infill drilling, and extend known mineralisation at key targets including Icon and Tuxedo within the Glenburgh system.
Focused Use of Funds
The proceeds will be directed towards a comprehensive suite of exploration activities – reverse circulation and diamond drilling programs, geological and technical studies, assay analysis, modelling, and environmental and heritage approvals. These efforts aim to expand and better define the mineral resources at Glenburgh and Mt Egerton, both of which hold multi-million-ounce potential.
Additionally, the capital will support ongoing corporate and administrative costs, ensuring Benz maintains operational momentum as it advances its portfolio.
Outlook and Market Positioning
Benz’s dual listing on the ASX and TSX Venture Exchange, combined with its focus on high-grade gold projects in premier jurisdictions like Western Australia and Quebec, positions it well to capitalize on rising gold demand. The company’s technical expertise and innovative exploration techniques further differentiate it in a competitive sector.
With this capital raise, Benz is poised to accelerate its growth trajectory, potentially unlocking significant value for shareholders as exploration results unfold.
Bottom Line?
Benz’s fresh capital sets the stage for a pivotal exploration phase that could redefine its standing in the gold sector.
Questions in the middle?
- How quickly will Benz translate the increased funding into tangible resource growth at Glenburgh?
- What are the key milestones investors should watch for in the upcoming drilling campaigns?
- Could further capital raises be necessary if exploration results exceed expectations?