Australian Securities Exchange (ASX)-listed gold exploration company Hamelin Gold has secured firm commitments from investors to raise approximately A$2.8m ($1.68m) before costs, with shares priced at A$0.07 each, to accelerate gold exploration in Western Australia (WA).
This funding includes an investment of around $815,000 from Gold Fields, a major shareholder in Hamelin, increasing its stake to approximately 17.7%.
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The placement also sees commitments from Hamelin’s directors for roughly $100,000 in shares.
The net proceeds from the placement will primarily finance exploration activities at the company’s 100% owned WA gold projects.
In the West Tanami region, the funds will support reverse circulation (RC)/diamond drilling at Jazz and Fremlins, aircore/RC drilling at Camel, Far SW, Hutch’s and Ginger, and extend Ultrafine geochemical sampling across untested gold targets.
In the Yilgarn region, the investment will enable diamond drilling of the Anderson gold anomaly, follow-up RC drilling at Ularring and initial aircore drill testing of priority gold targets at the Venus project, in addition to providing general working capital.
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By GlobalDataThe placement to unrelated parties will utilise Hamelin’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A, amounting to 23.02 million and 15.75 million new shares, respectively.
Chieftain Securities and Cygnet Capital served as joint lead managers for the placement.
They are set to receive a total of two million options, exercisable at $0.15 each within 24 months, subject to shareholder approval at a general meeting planned for May 2025.
Hamelin’s shareholder base includes gold mining companies such as Gold Fields and Vault Minerals.
Hamelin managing director Peter Bewick said: “We greatly appreciate the ongoing support from our existing shareholders and welcome new shareholders at an exciting time for the company.
“Over the next few months we will be drill testing a suite of large-scale gold targets in the West Tanami and across our Yilgarn gold projects. We look forward to providing shareholders with updates on the progress of these activities and as results are received.”
