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Highlights

  • GML secured AUD 22.5m placement for Yandal Gold and Glenburgh South exploration programs.
  • Directors and related parties committed AUD 1.675m, including AUD 1m from Chairman Andrew Bray.
  • Funds allocated to drilling, geophysics, geochemistry, and corporate working capital.

Gateway Mining Limited (ASX:GML) is an Australian gold exploration company. Its key projects include the 1,000 km² Montague Project in the North Murchison region and the Yandal Project in Western Australia, which covers the Celia Shear Zone with resources at Horse Well and Dusk ’Til Dawn, plus several advanced exploration targets.

Raise Through Placement

The company has announced it has secured firm commitments to raise AUD 22.5 million through a placement to institutional, professional and sophisticated investors. The capital raising will fund the company’s next phase of exploration and drilling at its Yandal Gold Project in Western Australia, alongside initial exploration at the recently acquired Glenburgh South Project.

The placement received demand beyond the amount raised and included participation from new and existing shareholders. The company directors and related parties committed a total of AUD 1.675 million, subject to shareholder approval. This includes a AUD 1 million commitment from Executive Chairman Andrew Bray.

Mr Bray commented:
“We are delighted with the exceptionally strong support shown for this AUD 22.5 million capital raising, both from our existing shareholders and new investors. The support we received is a strong endorsement of our strategy, and in particular the potential we see at our flagship Yandal Gold Project.

With large scale drilling programs already scheduled to commence in the coming weeks, we are fully funded to build on the exciting results delivered to date and to continue unlocking value across our high-quality portfolio.”

Placement Details

The placement comprises 409,090,909 new shares issued at AUD 0.055 per share. The offer price represents a 15.4% discount to the last closing price of AUD 0.065 and a 7.9% discount to the 15-day VWAP of AUD 0.0597.

Of the new shares, 190,655,942 will be issued under ASX Listing Rule 7.1A and 187,980,421 under Listing Rule 7.1. Shares allocated to directors and related parties, totaling 30,454,546, are subject to shareholder approval at the company’s upcoming annual general meeting.

JP Equity Partners acted as lead manager for the placement. As part of the transaction, 20,000,000 unlisted options will be issued to the Lead Manager or its nominees, exercisable at AUD 0.10 and expiring three years from the date of issue.

Use of Funds

Proceeds will support a 25,000-metre aircore drilling program testing the Mustang shear and its intersection with the Celia shear, first-pass diamond drilling at Dusk ‘til Dawn, RC and diamond drilling at Great Western, and regional geophysical and geochemical programs. Additional work will target the Glenburgh South and Barrelmaker/Montague Projects. Funds will also cover placement costs, corporate purposes, and general working capital.

The company has requested reinstatement of its securities to official quotation.

Share Performance

Gateway Mining shares are currently trading at AUD 0.061, compared with the last closing price of AUD 0.065. The stock has traded within a 52-week range of AUD 0.019 to AUD 0.070. The company has 1,913,723,950 shares on issue, giving it a market capitalisation of approximately AUD 124.39 million.