Highlights

  • Lachlan Star secured firm commitments to raise A$7.47 million via a share placement at AUD 0.12 per share
  • Placement price reflects a 20% discount to the last traded price and ~14–15% discount to recent VWAP levels
  • Majority A$7.2 million to be raised under Tranche One, with an additional A$0.268 million from director participation (subject to approval)
  • Funds to accelerate drilling at the New Waverley Gold Project targeting high-grade quartz reef structures
  • Strong backing from existing shareholders and new institutional investors supports funding certainty

Lachlan Star Ltd shares (ASX:LSA) slipped 3.33% to AUD 0.14 on 1 April 2026, despite the release of a funding update that outlines strengthened financial capacity for exploration. The stock, however, remains up 107.14% over the past year, reflecting longer-term momentum even as it eased following the announcement.

Capital Raising to Accelerate Exploration Plans

The company announced it has received firm commitments to raise approximately A$7.47 million (before costs) through a share placement priced at AUD 0.12 per share. The placement attracted support from a mix of existing shareholders as well as new sophisticated and institutional investors.

The proceeds are intended to fund exploration activities, with a primary focus on advancing the New Waverley Gold Project in Western Australia. The funding is expected to provide the company with the financial capacity to move forward with its planned drilling program.

In addition, directors of the company have committed to participate in the raising, subscribing for shares subject to shareholder approval, further aligning management with the capital initiative.

Focus on New Waverley Gold Project

The New Waverley Gold Project represents a key asset within the company’s portfolio, located in the established Norseman gold region of Western Australia. The project hosts a prospective corridor featuring high-grade quartz reef structures, similar to those historically associated with the region.

Drilling activities are planned to systematically test this corridor, including validation of historical drill results at known locations such as Waverley and Trial Pits. The program is also aimed at assessing the potential for additional high-grade mineralisation both along strike and at depth.

The capital raising is expected to support this next phase of exploration, enabling the company to advance its understanding of the project’s broader mineral potential.

Broader Exploration Strategy Continues

Alongside New Waverley, Lachlan Star Ltd will continue progressing work at its nearby Killaloe Project. These assets form part of a wider exploration portfolio that also includes projects in New South Wales.

The company’s broader strategy is centred on identifying and developing gold and copper resources across its project base, with ongoing exploration seen as a key driver of value.

Placement Structure and Pricing

The placement will be completed in two tranches. The first tranche, comprising the majority of the capital raised, will be issued to institutional and sophisticated investors without requiring shareholder approval under existing placement capacity.

The second tranche relates to shares allocated to directors (or their associates) and is subject to shareholder approval at an annual general meeting.

The issue price represents a discount to recent trading levels as well as to short-term volume-weighted average prices, which is typical for placements of this nature aimed at securing investor participation.

Strong Investor Participation

The company highlighted strong backing for the placement, with support from both its existing shareholder base and new investors. This level of participation provides additional funding certainty as the company prepares to undertake its exploration programs.

Management noted that the capital raising supports maintaining current operational momentum while also enabling flexibility to accelerate drilling if required.

What This Means for Investors?

While Lachlan Star’s share price moved lower on the day, the announcement underscores a strengthened funding position as the company advances exploration at its New Waverley Gold Project. The capital raise provides financial backing for drilling activities and supports broader exploration objectives across its portfolio.

With funding secured and exploration programs set to progress, investors are likely to monitor how upcoming drilling outcomes shape the company’s growth trajectory, particularly within the highly prospective Norseman region.