Evergold Secures A$5.23M to Ignite Gold Drilling in WA’s Hotspots
Evergold Minerals has raised A$5.23 million to accelerate gold exploration at its Mt Monger and Leonora projects in Western Australia, setting the stage for imminent drilling and resource expansion.
- A$5.23 million placement at A$0.035 per share
- Drilling to start this quarter at Mt Monger targeting maiden JORC resource
- Resource expansion underway at Leonora with 63,000oz inferred gold
- Placement led by CPS Capital Group with strong investor support
- Director participation subject to shareholder approval
Evergold’s Strategic Fundraising
Evergold Minerals Limited (ASX, EG1) has successfully raised A$5.23 million through a placement priced at 3.5 cents per share. This capital injection is designed to fast-track exploration activities across two of Western Australia’s most promising gold districts, Mt Monger and Leonora. The placement attracted strong backing from sophisticated investors, with CPS Capital Group acting as lead manager and broker.
Accelerating Exploration at Mt Monger
The immediate focus is on the Mt Monger Gold Project, where drilling is scheduled to commence this quarter. The company aims to define a maiden JORC-compliant resource at key prospects including Duchess of York and Kiaki Soaks. Historical drilling results at Mt Monger are encouraging, with intercepts such as 40 metres at 2.49 grams per tonne gold from 32 metres depth, highlighting the project’s potential.
Expanding Resources at Leonora
Meanwhile, Evergold is advancing resource expansion efforts at the Leonora Goldfields Project, which already hosts an inferred gold resource of 63,000 ounces. The company is working towards heritage approvals with Traditional Owners to facilitate further drilling and exploration. Leonora’s location within a world-class gold jurisdiction surrounded by Tier-1 producers adds strategic value to Evergold’s portfolio.
Placement Structure and Governance
The placement will be executed in two tranches, the first tranche involves issuing approximately 59 million shares under existing ASX capacity, while the second tranche, comprising about 90 million shares, awaits shareholder approval at an upcoming general meeting. Notably, directors have signaled their intent to participate in the raise, subject to approval, underscoring management’s confidence in the company’s prospects.
Looking Ahead
Funds raised will also support additional geophysical surveys, regional exploration at Victor Bore and Craigs Rest, and general working capital. With drilling imminent and resource growth initiatives underway, Evergold is positioning itself to capitalise on a robust gold market and the inherent value of its Western Australian assets.
Bottom Line?
Evergold’s fresh capital sets the stage for a pivotal exploration phase that could reshape its resource profile and market standing.
Questions in the middle?
- Will drilling at Mt Monger confirm a maiden JORC resource and at what scale?
- How quickly can Evergold secure heritage approvals to unlock Leonora’s full potential?
- What impact will the shareholder vote have on the placement’s second tranche and director participation?
