Strickland Metals has announced a $55 million institutional placement to fund an expanded drilling program and advance a Pre-Feasibility Study for its Rogozna gold project in Serbia, with major shareholders reaffirming their support.
- A$55 million placement at A$0.16 per share, a 15.8% discount
- Funds to support 70,000m drilling program at Rogozna in 2026
- Pre-Feasibility Study targeted for first half of 2027
- Major shareholders Ibaera and Zijin to maintain or increase stakes
- Placement represents approximately 15% of existing shares
Capital Raise to Accelerate Exploration
Strickland Metals Limited (ASX, STK) has announced a significant equity raising, aiming to secure approximately A$55 million through an institutional placement priced at A$0.16 per share. This represents a 15.8% discount to the company’s last closing price of A$0.19, reflecting a strategic move to bolster funding for its flagship Rogozna gold project in Serbia.
The placement will see the issue of around 343.2 million new shares, equating to roughly 15% of the company’s current share base. The capital injection is earmarked primarily to support an ambitious 70,000-metre drilling program scheduled for 2026, designed to expand and refine the resource base across key deposits including Shanac, Gradina, Copper Canyon, and the recently discovered Red Creek.
Backing from Major Shareholders
Notably, Strickland’s major shareholders have demonstrated strong confidence in the project’s prospects. Ibaera Capital Fund subsidiaries ISIHC Ltd and Euston LLC have committed to participate pro-rata to maintain their 16.6% stake, while Zijin Mining Group is increasing its holding from 3.3% to 4.0% through a A$5 million investment. This backing from established institutional investors underscores the perceived value and potential of the Rogozna project.
Managing Director Paul L’Herpiniere highlighted the progress since acquiring Rogozna, describing the recent exploration results as “outstanding” and emphasising the company’s ambition to establish Rogozna as a leading development project. The placement is positioned as a timely opportunity to accelerate exploration and advance the delivery of a Pre-Feasibility Study (PFS) targeted for the first half of 2027.
Strategic Use of Funds and Project Outlook
The proceeds will not only fund the extensive drilling program but also support ongoing internal scoping studies and the PFS, which will incorporate updated resource estimates expected by late 2026. These studies are critical to underpinning future mining development decisions and enhancing the project’s valuation.
Strickland’s Rogozna project currently hosts an inferred mineral resource estimate of approximately 8.6 million ounces of gold equivalent, spread across multiple deposits with varying grades of gold, copper, silver, lead, and zinc. The drilling and study work aim to further define and potentially expand these resources, improving the project’s economic outlook.
Placement Details and Next Steps
The placement is not underwritten, introducing some uncertainty regarding the final amount raised, though firm commitments from major shareholders provide a strong foundation. The new shares will rank equally with existing shares, with tranche 1 shares issued under the company’s placement capacity and tranche 2 shares, involving directors, subject to shareholder approval at a meeting scheduled for March 18, 2026.
Joint lead managers Macquarie Capital and Jett Capital Advisors are overseeing the placement, with trading expected to resume promptly following the announcement. Investors and market watchers will be keenly observing the progress of the drilling program and the delivery of the PFS, which will be pivotal in shaping Strickland’s development trajectory.
Bottom Line?
Strickland’s $55 million raise sets the stage for a critical year of exploration and study work that could redefine the Rogozna project’s future.
Questions in the middle?
- Will the full $55 million placement be successfully raised given it is not underwritten?
- How will updated resource estimates from the 2026 drilling program impact project valuation?
- What are the key risks that could delay or affect the delivery of the Pre-Feasibility Study in 2027?