New Murchison Gold Limited (ASX: NMG) has announced a successful $16.5 million placement to institutional and sophisticated investors. The placement, priced at $0.013 per new share, was oversubscribed, demonstrating strong market confidence in the company’s exploration and development strategy, particularly for the Crown Prince Gold Project. Proceeds from the placement will be directed towards accelerating near-mine resource expansion through exploration and project development activities. A significant portion of the new funding will facilitate deeper drilling at the Crown Prince deposit.
Westgold Resources Ltd, NMG’s largest shareholder, participated in the placement with a $2.8 million investment, increasing their stake to 16.22% post-placement, underscoring confidence in NMG’s direction. The issue price reflects a 12.5% discount to the 5-day VWAP, but a slight premium to the 15-day VWAP. The company expects to issue the new shares around March 27, 2025.
According to CEO Alex Passmore, the placement was prompted by substantial institutional interest following recent exploration successes and growing recognition of the progress at the Crown Prince Gold Project. The funding aims to expedite project development and deeper drilling at the deposit. The company anticipates delivering production from Crown Prince in the second half of 2025, leveraging a previously announced ore purchase agreement and mining development plan.
Canaccord Genuity (Australia) Limited and Argonaut Securities Pty Limited acted as joint lead managers for the placement, with Taylor Collison Limited and Leeuwin Wealth Pty Ltd serving as co-managers. Following the placement, New Murchison Gold expects to hold approximately $22.1 million in cash, before placement costs, positioning it strongly for upcoming activities.
