New Murchison Gold Limited (ASX: NMG), founded in Australia in 2003, is a Western Australia-focused mineral exploration and development company. Headquartered in West Perth, WA, the company holds a significant tenement package in the Murchison goldfield, one of the most prolific gold-producing regions in Australia. The company’s flagship Garden Gully Gold Project spans 677km², covering key gold-bearing structures, including the Abbotts Greenstone Belt. Within this project, the Crown Prince Deposit is the most advanced asset, moving towards development and production. The deposit is located within a granted mining lease, positioning it for near-term mining operations. Currently, New Murchison Gold shares are trading at $0.017 per share.
The $16.5 million capital raise was conducted through the issue of 1,269,230,769 new fully paid ordinary shares at an offer price of $0.013 per share. This pricing represents a 12.5% discount to the 5-day VWAP but a 0.2% premium to the 15-day VWAP, reflecting strong market demand for New Murchison Gold shares.
The placement was heavily oversubscribed, highlighting investor confidence in the company’s exploration and development strategy. It was supported by globally significant resources-focused funds, as well as existing major shareholders, including Westgold Resources Ltd, which increased its investment with a $2.8 million commitment.
Funds raised through the placement will be used to accelerate exploration, near-mine resource growth, and development activities at the Crown Prince Gold Project, where the company is targeting initial production in H2 2025.
The placement was conducted using New Murchison Gold’s available placement capacity under ASX Listing Rules 7.1 and 7.1A. A total of 440,277,764 new shares were issued under Listing Rule 7.1, with an additional 828,953,005 shares under Listing Rule 7.1A.
Settlement of the new shares is expected on 26 March 2025, with ASX quotation scheduled for 27 March 2025. The placement was jointly managed by Canaccord Genuity (Australia) Limited and Argonaut Securities Pty Limited, with Taylor Collison Limited and Leeuwin Wealth Pty Ltd acting as co-managers.
The Crown Prince Gold Project, located within the Garden Gully Gold Project, is New Murchison Gold’s most advanced asset. The project is progressing towards production, with funding from the placement enabling near-mine resource expansion and development activities.
New Murchison Gold has already established an ore purchase agreement, which will facilitate gold production and processing once mining commences in H2 2025. Exploration efforts will focus on deeper drilling at Crown Prince, targeting extensions of high-grade gold mineralisation.
CEO Alex Passmore highlighted that the placement proceeds will allow New Murchison Gold to accelerate project development, enabling the company to unlock further value from the Crown Prince deposit and the broader Garden Gully tenure.
Following the completion of the placement, New Murchison Gold will have an estimated cash balance of $22.1 million, providing strong financial flexibility to execute its exploration and development plans. The company will allocate funds towards exploration and resource expansion drilling at Crown Prince, mine development activities leading to first production in H2 2025, and general working capital to support corporate operations.
The successful capital raise reflects strong market confidence in New Murchison Gold’s growth strategy, particularly its ability to transition from exploration to production in a short timeframe.
New shares from the placement will be settled on 26 March 2025, with quotation expected on 27 March 2025. The company remains focused on delivering key project milestones, with investors closely monitoring exploration results, resource updates, and development progress at Crown Prince.
With a significant gold resource base, strong institutional backing, and a clear path to production, New Murchison Gold is positioned for long-term growth and value creation in the Australian gold sector.
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