Sierra Nevada Gold (ASX: SNX) has completed a $12.85 million capital raise to fund an aggressive Phase 2 drilling campaign at its As Safra Copper-Gold Project in Saudi Arabia, supported by strong institutional backing.
- Raised $12.3 million via placement at $0.10 per CDI
- Directors to participate with $0.55 million tranche pending approval
- Phase 2 drilling campaign exceeds 25,000m plus extensive trenching
- Phase 1 drilling confirmed significant copper mineralisation over 800m
- Strategic review underway for Nevada projects alongside Saudi expansion
Capital Raising Fuels Rapid Expansion at As Safra
Sierra Nevada Gold (ASX:SNX) has successfully raised $12.85 million, combining a $12.3 million placement and a $0.55 million director tranche pending shareholder approval, to accelerate exploration at its flagship As Safra Copper-Gold Project in Saudi Arabia. The placement, priced at $0.10 per new CDI, attracted strong support from existing institutional investors as well as new institutional funds and family offices, reflecting confidence in the project's potential.
Phase 2 Drilling Set to Define Mineralised System
Early results from Phase 1 drilling have confirmed a coherent copper mineralised system extending over 800 metres at the Central Copper Zone of As Safra. With the broader 5.5-kilometre mineralised corridor still largely untouched, SNX is poised to embark on an ambitious Phase 2 program comprising over 25,000 metres of reverse circulation and diamond drilling, alongside approximately 10.5 kilometres of trenching. This campaign aims to delineate the scale, continuity, and geometry of the mineralised system and is expected to commence within six weeks.
Broader Strategic Initiatives in Saudi Arabia and Nevada
Beyond As Safra, SNX is actively exploring additional business development opportunities within Saudi Arabia, leveraging a technical and corporate team with regional expertise. Concurrently, the company is advancing a strategic review and commercialisation process for its portfolio of five wholly owned precious and base metal projects in Nevada, USA. This dual focus underscores SNX's intent to balance rapid growth in a promising emerging mining jurisdiction with value optimisation of its US assets.
Details and Timetable of the Capital Raise
The placement was conducted under the company’s existing placement capacity, with the offer price representing a 13% discount to the last traded price and modest discounts to recent volume weighted average prices. The director tranche of $0.55 million, involving eligible directors and management subscribing for 5.5 million new CDIs, awaits shareholder approval at an Extraordinary General Meeting anticipated in late October 2026. Settlement of the placement shares is expected by early September, with quotation shortly thereafter.
SNX’s Position in the Arabian Shield
As Safra stands as a district-scale copper-gold project within the Arabian Shield, an area benefiting from significant government investment and mining reforms. The project offers exposure to a large-scale copper-gold system with potential to become a globally significant discovery. SNX’s strategy to focus capital and expertise here aligns with the broader trend of international mining interest in Saudi Arabia, positioning the company to potentially unlock substantial shareholder value.
Bottom Line?
SNX’s capital raise sets the stage for a critical drilling phase at As Safra, but the success of this campaign and shareholder approval for the director tranche will be key milestones to watch.
Questions in the middle?
- Will Phase 2 drilling results confirm the scale suggested by Phase 1 mineralisation?
- How will the strategic review of Nevada projects influence SNX’s capital allocation?
- What new business opportunities might SNX pursue within Saudi Arabia beyond As Safra?