FIN Resources has secured A$1.7 million via a two-tranche placement to fund diamond drilling at its Cabin Lake Gold Project, targeting 14 undrilled high-priority prospects in Canada’s Northwest Territories.
- Placement of 425 million shares at A$0.004 each to raise A$1.7 million
- One free attaching option per share exercisable at A$0.008, expiring December 2028
- Second tranche subject to shareholder approval in September 2026
- Funds earmarked for diamond drilling and geological work at Cabin Lake
- Joint lead managers to receive fees and options, also subject to approval
Capital Raise Targets Exploration Acceleration
FIN Resources Limited (ASX:FIN) has completed a placement to raise A$1.7 million through the issue of 425 million shares at a modest price of A$0.004 each. Accompanying the shares are an equal number of free attaching options exercisable at A$0.008, expiring at the end of 2028. The capital injection aims squarely at accelerating diamond drilling at the company’s Cabin Lake Gold Project in Canada’s prolific Northwest Territories.
Placement Structured in Two Tranches
The placement is split into two tranches: the first tranche, comprising approximately 216 million shares, was issued under the company’s 15% placement capacity rules, raising about A$866,000. The second tranche, involving roughly 209 million shares and all 425 million options, awaits shareholder approval at an Extraordinary General Meeting scheduled for September 2026. This introduces an element of uncertainty around the full dilution and funds raised until the vote concludes.
Drilling Program Targets 14 High-Priority Prospects
FIN plans to deploy the funds primarily towards its next phase of diamond drilling, set to commence later this month. The program will test 14 previously undrilled high-priority targets within the Cabin Lake project area, which has shown promising sulphide-hosted gold mineralisation within banded iron formations. The drilling campaign follows a series of integrated geological and geophysical studies that have refined the company’s exploration model and identified multiple targets along a 15-kilometre prospective strike.
Alongside drilling, proceeds will support ongoing geological and geophysical interpretation, target refinement, and general working capital. This continued investment in exploration builds on recent successes, including confirmation of high-grade gold zones at prospects such as Arrow, Beaver, and Andrew South.
Joint Lead Managers to Receive Fees and Options
GBA Capital, Max Capital, and Peak Asset Management acted as joint lead managers to the placement. FIN will pay them a management fee of 2% and a capital raising fee of 4% on the proceeds raised. Additionally, subject to shareholder approval, the company will issue 63.75 million options to the joint lead managers or their nominees on the same terms as the placement options, further aligning incentives.
Cabin Lake Positioned in a Tier-1 Jurisdiction
Located approximately 105 kilometres northwest of Yellowknife, the Cabin Lake Gold Project sits within the Archean Slave Craton, a Tier-1 jurisdiction with a history of over 14 million ounces of gold production. The project’s geology is comparable to the nearby Lupin Gold Mine, which produced over 3 million ounces at high grades. FIN holds 100% ownership and has established strong engagement with the Tłı̨chǫ Government, including access agreements and on-ground support, critical for advancing exploration activities smoothly.
Bottom Line?
The placement funds a critical drilling phase that could unlock new gold zones, but shareholder approval for the second tranche will be pivotal to fully realise this exploration push.
Questions in the middle?
- Will shareholders approve the second tranche and options issuance in September?
- How will assay results from the upcoming drilling influence FIN’s project valuation?
- What impact will the dilution from this placement and options have on existing shareholders?