Antilles Gold wins strong support for $3.45 million Cuban mining funding

Oversubscribed offer expands to $3.45 million

Antilles Gold Limited (ASX:AAU) has secured more capital than originally sought, with its $2.55 million non-renounceable rights issue closing significantly oversubscribed and prompting a further $900,000 placement. The combined raising will deliver $3.45 million before costs, according to the company’s announcement.

Existing shareholders took up $1.16 million of the rights issue, while a further $1.39 million of shortfall securities was placed. The follow-on placement will add 128.6 million shares and the same number of free-attaching options, issued on identical terms to the rights offer. In total, Antilles Gold plans to issue 492.9 million shares at $0.007 each, alongside options exercisable at $0.02 by 31 December 2028.

The result provides a measure of investor support at a difficult point in the company’s Cuban development story. Antilles Gold’s 50%-owned Minera La Victoria S.A. was designated a US Specially Designated National earlier this year, forcing the suspension of management and mine construction activities. The company is now negotiating for the sanction to be lifted, after the US sanctions on Minera La Victoria halted work on the Nueva Sabana project.

New funding is conditional on a sanctions breakthrough

The immediate use of the proceeds is deliberately defensive: fixed costs for the next 12 months, general working capital and the costs of the offers. The supplementary prospectus gives the additional $900,000 a more specific destination, allocating 94% to working capital and 6% to offer expenses.

That working capital is intended to fund an infill drilling program at the La Demajagua gold-silver-antimony mine, also held through Minera La Victoria, but only if the US sanction is lifted. If that has not happened within 16 months, the prospectus says the money will instead support company overheads for up to another six months. The distinction matters: the new capital improves runway, but does not by itself restart Cuban operations.

Capital structure grows alongside cash reserves

On the prospectus assumptions, Antilles Gold’s shares on issue would rise from 3.279 billion to 3.772 billion, while options would increase from 905.4 million to 1.398 billion. That represents a substantial expansion of the securities base, although the options would only provide further funding if exercised and do not raise cash at issue.

The supplementary prospectus shows pro forma cash of US$3.87 million under its maximum-raise scenario, compared with US$1.59 million at 30 June 2026. The same scenario produces net assets of US$23.39 million, up from US$21.10 million. Those figures are presented in US dollars and assume the offer and additional offer are fully completed.

The new options are expected to trade under AAUOD, but that class was recently hit by an AAUOD quotation suspension pending compliance with ASX Listing Rule 2.5. The company’s funding success therefore arrives with two practical tests still ahead: completing the securities issue and resolving the regulatory obstacle that determines whether the newly funded project work can proceed.