Lowell Resources Fund Plans 4.98 Million Unit Placement at A$2.01

Wholesale Placement Targets A$10 Million Capital Raise

Lowell Resources Fund (ASX:LRT) is preparing to raise around A$10 million through a wholesale placement of approximately 4.98 million new fully paid units priced at A$2.01 each. This price aligns with the unit price recently issued under the fund's Distribution Reinvestment Plan (DRP) for the 2025-26 financial year, signalling consistency in valuation for incoming investors.

The placement is designed to fit within the Trust's existing 15% placement capacity under ASX Listing Rule 7.1, meaning it does not require unitholder approval. The new units will rank equally with existing units, including distribution entitlements, maintaining parity among investors.

Bookbuild and Advisory Team Engaged

To execute the placement, Cremorne Capital Ltd as Responsible Entity has appointed Taylor Collison Limited and Canaccord Genuity (Australia) Limited to conduct a volume-based bookbuild. MP Capital has been engaged as financial advisor, indicating a professional approach to managing investor interest and pricing dynamics.

The bookbuild opened on 18 August and is scheduled to close on 19 August, with results and the resumption of trading expected on 20 August. While interest has been expressed by wholesale investors, no binding agreements have yet been finalised, leaving some uncertainty around the final raise amount.

Securities Purchase Plan to Follow Placement

Following the wholesale placement, the Responsible Entity intends to offer a Securities Purchase Plan (SPP) to existing unitholders at the same A$2.01 price. This move aims to provide retail investors with an opportunity to participate in the capital raise on equal terms, potentially broadening the fund’s investor base.

Details of the SPP will be announced alongside the placement results on 20 August, offering clarity on the timing and scale of this additional capital raising initiative.

Capital Raise in the Context of Fund Performance

Lowell Resources Fund has demonstrated strong performance in recent years, with net asset value surging over 60% in the half-year ending December 2025, driven by a gold-heavy portfolio. This capital raise could provide additional firepower for the fund to capitalize on opportunities in the junior resources sector, which remains a high-risk, high-reward space.

However, the placement and forthcoming SPP will dilute existing unitholders unless they participate, a typical trade-off in capital raising scenarios. Investors will be watching closely how the fund deploys the new capital and whether the unit price sustains post-raise.