New Murchison Gold (ASX: NMG) has successfully secured firm commitments for a $16.5 million placement of new shares at $0.013 per share. The placement attracted strong support from both existing and new strategic cornerstone investors, including globally significant resources-focused funds, exceeding initial demand. Proceeds from the placement will be directed toward accelerating near-mine resource growth through exploration and development activities at the Crown Prince Gold Project.
Westgold Resources Ltd, NMG’s largest shareholder, participated in the placement with a $2.8 million subscription, increasing its stake to 16.22% post-placement. The funds raised are expected to significantly bolster NMG’s financial position, with a pro forma cash balance of approximately $22.1 million post-placement, before costs. The company plans to issue 1,269,230,769 new shares around March 27, 2025.
According to CEO Alex Passmore, the placement follows strong inbound interest driven by recent exploration successes and recognition of the Crown Prince Gold Project’s development. The capital will facilitate accelerated project development and deeper drilling at Crown Prince. New Murchison Gold anticipates delivering production from the Crown Prince Gold Project in H2 2025 via its ore purchase agreement and mining development.
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. The placement was priced at a 12.5% discount to the 5-day VWAP and a 0.2% premium to the 15-day VWAP. The company will utilize its available placement capacity under ASX Listing Rules 7.1 and 7.1A for the issuance of the new shares.
