Fully underwritten $2.468 million raise sets SQX Resources (ASX:SQX) up for its next Red Bird gold push

Aditi Sarkar

28 October 2026 04:12 PM AEDT

Fully underwritten $2.468 million raise sets SQX Resources (ASX:SQX) up for its next Red Bird gold push

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

SQX Resources raised $2,468,000 before costs through a fully underwritten 2-for-3 entitlement offer priced at $0.04 per share.
Cash reached $2.4 million at 30 September 2026, up sharply from $583,000 at the start of the quarter.
Red Bird drilling returned 45.7 metres at 1.3 grams per tonne gold, with mineralisation open along strike.
Williams assays are expected in the December 2026 quarter, followed by electromagnetic surveying and drilling at the Montana project.

In Arizona, shallow gold runs from surface to at least 60 metres depth at Red Bird, and SQX Resources (ASX:SQX) has just refilled its treasury to chase it. A fully underwritten offer lifted quarter-end cash to $2.4 million, and the company has laid out what comes next across Arizona, Montana and Queensland.

Cash rebuilt through an underwritten offer

The 2-for-3 non-renounceable entitlement offer was priced at $0.04 a share and issued 61.7 million new shares. Cash at 30 September 2026 was $2,397,000, against $583,000 at the start of the quarter.

Alpine Capital Pty Ltd underwrote the offer. Directors took up their full entitlements and sub-underwrote up to $130,000 in aggregate. Offer costs came to $105,000, operating outflows were $257,000 and exploration and evaluation spending was $311,000.

Proceeds are earmarked for exploration at Red Bird, Williams and Ollenburgs, assessment of new projects, working capital and offer costs. The company reported no debt or undrawn facilities and estimated 4.21 quarters of funding at current outgoings. Related-party payments totalled $90,000 for director fees, wages and legal services, plus $81,000 for geological and exploration services from director-related entities.

Red Bird: shallow gold, open along strike

SQX holds 80 per cent of Red Bird through its structure. The maiden program comprised 25 reverse circulation holes for 2,509 metres, and results showed gold mineralisation from surface to at least 60 metres depth.

The standout intercepts:

RBRC013: 45.7 metres at 1.3 grams per tonne gold from 4.6 metres, including 13.7 metres at 2.2 grams per tonne.
RBRC023: 24.4 metres at 3.1 grams per tonne from 22.9 metres, including 9.1 metres at 6.6 grams per tonne.
RBRC019: 22.9 metres at 2.8 grams per tonne from 42.7 metres, including 4.6 metres at 8.7 grams per tonne.

The company said mineralisation sits in low-dipping limy conglomerate units across two horizons that converge toward a major north-east striking fault. It remains open along strike, and footwall intercepts west of the mine suggest new prospectivity.

During the quarter SQX advanced an internal resource evaluation and mining scenario work. It also prepared composites from the drilling samples for heap-leach amenability testing, to be sent to a US laboratory. These are exploration results rather than a mineral resource estimate.

Williams and Queensland

The Williams gold-silver project in Montana has eight known vein structures. Field crews mobilised in September 2026 for detailed surface sampling and mapping. The company cited earlier chip-channel samples of 0.6 metres at 75.1 grams per tonne gold and 576 grams per tonne silver, plus a historical stope of 876 tonnes at 141.7 grams per tonne gold. Assay results are expected in the December 2026 quarter, with fixed-loop electromagnetic surveying and drilling to follow.

In Queensland, a technical review of historical data at Ollenburgs and Scrub Paddock is complete. Historical Scrub Paddock results include 28 metres at 1.2 grams per tonne gold from 101 metres. An infill induced polarisation program is planned, and an adjoining application, EPM 28578, awaits a native title agreement.

Gold Butte option and next milestones

SQX also holds an option over the Gold Butte project in Arizona. It costs US$27,250 a quarter for up to eight quarters, or US$225,000 in total, and the company can leave at any time without further obligation. Due diligence continues, and no tenements were acquired or disposed of during the quarter.

The Red Bird and Williams claims are held through AM6 Mining LLC and Stream Metals LLC. Competent person responsibility for the exploration information rests with Dr Julian Stephens, a director of SQX.

For the December 2026 quarter the company listed completion of Red Bird mining scenario work, planning of the next expansion-focused exploration phase, receipt of Williams assays, finalising the Queensland programs, and continued evaluation of further opportunities.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.