Spring Hill’s Future Hinges on PC Gold’s A$24M Capital Raise

Capital Raising Bolsters Spring Hill Ambitions

PC Gold Limited (ASX, PC2) has successfully completed a significant capital raising, securing approximately A$24 million through a single-tranche placement to a mix of leading domestic and international institutional investors. The placement price of A$0.65 per share represents a modest discount to recent trading levels, reflecting strong demand and confidence in the company’s growth strategy.

Notably, the Mining Finance division of Macquarie Bank Limited has joined as a cornerstone investor with a substantial A$5 million commitment, underscoring institutional belief in the potential of PC Gold’s flagship Spring Hill Gold Project in the Northern Territory.

Accelerating Exploration and Development

The fresh capital will be directed towards an aggressive program of infill and extension drilling, targeting approximately 30,000 metres of exploration to expand and upgrade the mineral resource base. This includes both surface and underground drilling, refurbishment of the existing underground adit, and early site works to support a feasibility study.

Spring Hill’s mineral resource, currently estimated at 25.6 million tonnes at 1.0 grams per tonne gold, is poised for growth as PC Gold advances its dual-stream strategy of upgrading resource confidence and pursuing extensional exploration. Environmental bonds and grade control drilling are also part of the planned expenditure, ensuring groundwork is laid for a smooth transition towards production.

Shareholder Support and Market Implications

Longstanding major shareholder RIVI Capital has supported the placement by selling 7 million shares at the offer price, reducing its stake to around 17%. This selldown is intended to enhance liquidity while maintaining RIVI’s significant exposure to the company’s future prospects. The board views RIVI’s ongoing commitment and restraint on further sales as a strong endorsement of PC Gold’s long-term strategy.

Following completion of the placement, PC Gold’s pro-forma cash position is estimated at approximately A$32 million, providing a robust financial platform to meet upcoming development milestones. The company’s share register now features a broad base of high-quality institutional investors, positioning it well for the next phase of growth.

Looking Ahead

With environmental approvals in place and a clear pathway to production, PC Gold is advancing steadily towards a development decision expected later this year. The capital raise not only fuels exploration but also signals growing market confidence in Spring Hill’s potential to become a significant gold producer on the ASX.