Albion adds firepower after high-grade Gidgee gold hit

$1.8 Million Raise Funds Expanded Gidgee Campaign

Albion Resources Limited (ASX:ALB) has raised its exploration budget after investors committed $1.8 million to fund a more aggressive campaign at the Gidgee Gold Project in Western Australia. The placement, priced at $0.05 per share, will issue 36 million new shares and give the company room to expand aircore and reverse circulation drilling, generate regional targets and pursue additional tenure.

The capital arrives after Albion’s first reported aircore assay at German Well South produced 7 metres at 3.6g/t gold from 60 metres, including 3 metres at 6.7g/t. The hole was drilled about 200 metres south of the main historical drilling area and ended in mineralisation. That is an encouraging signal, but it is still a single aircore result; the company says further drilling is required to establish continuity.

Two Rigs Target German Well South and Regional Prospects

Albion is now running two rigs. Reverse circulation drilling is testing extensions to known mineralisation at German Well South, while aircore drilling is screening the broader pipeline of targets, including Virgo, Tokey Central and the Wilson Splay.

The placement follows the company’s maiden Gidgee drilling campaign, which was its first exploration drilling across the project since 2014. Albion expects further aircore assays progressively, with initial reverse circulation results anticipated from late November 2026. The timing gives the company a steady stream of potential technical catalysts, though assay results will need to demonstrate more than isolated mineralisation.

Additional 27km² Tenure Moves Towards Exercise

Part of the funds will be used to exercise Albion’s strategic option over approximately 27km² of adjoining exploration ground. The tenure covers about 2 kilometres of the interpreted southern extension of the Tokey West Shear corridor, adding ground to a project already being tested along the German Well South trend.

The planned acquisition builds on the 27km² Gidgee tenure option, which was previously described as four adjacent exploration licences. Albion says the option exercise will cost $40,000 and allow it to pursue soil sampling, LiDAR surveys and further target generation across the expanded footprint.

Placement Structure Leaves Several Approvals Ahead

Most of the placement, worth approximately $1.58 million, will be issued under Albion’s existing placement capacities. A further 4.45 million shares, representing about $0.22 million, requires shareholder approval at the annual meeting scheduled for 27 November 2026.

Directors and management have also committed to subscribe for $170,000, subject to that approval. The company will seek approval for 12.5 million broker options exercisable at $0.08 for three years, as well as a proposed incentive package comprising 10 million performance rights for directors and management and 4 million options for key geologists and consultants. The new shares will rank equally with existing shares, but the issue will increase the share count and the options and proposed incentives could add further potential dilution if issued and later exercised.