Santana Minerals Raises A$17.04 Million in Final Placement Tranche for Development
Santana Minerals has finalised the second tranche of its A$130 million capital raising, issuing nearly 19 million shares and securing A$17.04 million before costs. The company confirms ongoing progress towards project construction scheduled for late 2026, supported by strong margins and green hydro power.
- Second tranche placement raises A$17.04 million, completing A$130 million raise
- Shareholder approval obtained for remaining tranche in March 2026
- Construction planned for last quarter of 2026 with final consents underway
- Use of green hydro power expected to mitigate cost pressures
- Capital raising conducted without disclosure under Corporations Act Part 6D.2
Completion of Capital Raising
Santana Minerals Limited (ASX/NZX:SMI) has completed the second tranche of its previously announced A$130 million placement, issuing 18,930,718 fully paid ordinary shares and raising A$17.04 million before costs. This follows shareholder approval secured on 31 March 2026, finalising the capital raising initiative first disclosed in February 2026.
The placement was conducted without disclosure under Part 6D.2 of the Corporations Act 2001, with the company confirming compliance with relevant legal provisions and the absence of excluded information requiring disclosure. An Appendix 2A relating to the tranche has been separately announced to the exchange.
Project Development and Market Conditions
Executive Director and CEO Damian Spring acknowledged the challenging geopolitical environment, referencing Middle East tensions impacting capital markets. Despite this, he emphasised that project fundamentals remain unchanged, with rapid advancement towards securing final consents for development. Construction is planned to commence in the last quarter of the calendar year 2026.
Spring highlighted the company’s strong margins, supported by a power supply predominantly sourced from green hydro power. This energy strategy is expected to provide a buffer against potential cost increases associated with diesel power generation at the planned processing plant.
Context of Capital Raising and Project Timeline
This tranche completes the two-part placement announced in February 2026, which initially raised A$113 million in an unconditional first tranche. The full A$130 million raise is intended to accelerate development of the Bendigo Ophir Gold Project, funding early works, exploration, and equipment procurement ahead of final resource consents.
The capital raising and project progress occur alongside a clear regulatory timeline, with a statutory decision deadline for project approval set for 29 October 2026. This structured timeline was confirmed earlier in the year, providing a framework for the company’s development plans and regulatory engagement.
For further background on the initial placement and shareholder approval process, see Santana Minerals’ earlier A$113 million unconditional placement and the fast-track approval timeline for the Bendigo Ophir Gold Project.
Bottom Line?
Completion of this capital raising tranche solidifies Santana Minerals’ financial position as it advances towards construction, though geopolitical and market volatility remain factors to monitor.
Questions in the middle?
- How will ongoing geopolitical tensions influence investor appetite for mining sector capital raises?
- What are the key milestones remaining before final consents and construction commencement?
- How might fluctuations in energy costs impact project economics despite the use of green hydro power?
