Nexus Minerals has secured firm commitments for a A$5.4 million placement to fund drilling and exploration across its Wallbrook Gold Project and NSW Mineral Project. The raise is priced below recent market benchmarks and is expected to lift cash above A$8.7 million before costs.
- A$5.4 million placement at A$0.053 per share
- Approximately 101.9 million new shares to be issued
- Funds earmarked for aircore, RC and diamond drilling
- Post-placement cash expected to exceed A$8.7 million before costs
- Placement price discounts recent closing price and VWAPs
A$5.4 Million Placement Secured
Nexus Minerals Limited (ASX:NXM) has locked in A$5.4 million of new funding, giving the gold explorer a larger financial base for drilling at its Wallbrook project in Western Australia. The placement will issue approximately 101.9 million shares at A$0.053 each to institutional and sophisticated investors.
Nexus said the raising received strong support from specialist North American long-only investors, Australian institutions and existing shareholders. The offer price sits 8.6% below the 16 September closing price of A$0.058, and represents discounts of 9.9% to the five-day VWAP and 10.6% to the 10-day VWAP measured on the same date.
Wallbrook Drilling Programme Takes Priority
The proceeds will fund a three-pronged drilling programme at Wallbrook: aircore drilling across priority regional targets, reverse-circulation drilling to advance existing prospects, and diamond drilling at Payns and Branches. Nexus said the diamond work is intended to improve geological confidence and support potential upgrades to the resource category at those prospects.
The capital will also support high-priority target generation at the NSW Mineral Project, geophysical surveys and general working capital. That leaves the company with several exploration fronts, although Wallbrook is clearly the immediate centre of gravity for the spending plan.
Cash Balance to Exceed A$8.7 Million
Following settlement, Nexus expects to hold more than A$8.7 million in cash before placement costs. Managing director Andy Tudor said the balance would provide financial flexibility to progress priority work programmes and meet ongoing corporate requirements, though the announcement does not quantify the expected cost of the exploration campaigns or set out a detailed spending schedule.
The raise is being completed under Nexus’s existing ASX placement capacity, with 41,886,793 shares issued under Listing Rule 7.1 and 60 million under Listing Rule 7.1A. Settlement is scheduled for 24 September, with allotment and trading of the new shares expected on 25 September. Until those steps occur, the stated cash position and share count remain prospective rather than completed.
Dilution Meets Exploration Execution
The placement strengthens Nexus’s ability to keep drilling, but it also expands the company’s issued share base and was completed at a discount to recent trading measures. The investment case now turns in part on whether the funded work at Wallbrook produces the geological confidence, resource improvements or new discoveries the programme is designed to pursue. As with any exploration campaign, those outcomes remain uncertain.
Bottom Line?
The immediate catalyst is the start of funded drilling, but the key test will be whether the larger cash balance converts into stronger resource confidence at Payns and Branches without a rapid return to the market for more capital.
Questions in the middle?
- How quickly will Nexus deploy the new funds across aircore, RC and diamond drilling?
- Will the Payns and Branches diamond programmes support an upgrade in resource classification?
- How much of the post-placement cash balance will remain after exploration and issue costs?