Highlights

  • Burley Minerals announced plans to raise approximately AUD 1 million through a Placement and Share Purchase Plan.
  • The funding will support drilling activities at the Cane Bore Iron Ore Project in Western Australia’s Pilbara region.
  • The placement component secured AUD 0.7 million from sophisticated and institutional investors.
  • Eligible shareholders will also be offered participation in a Share Purchase Plan targeting up to AUD 0.3 million.
  • The company said the funds will also support lithium exploration, potential acquisitions and Working Capital needs.

Burley Minerals Ltd (ASX:BUR) has announced plans to raise approximately AUD 1 million to support exploration and drilling activities at its Cane Bore Iron Ore Project in the Pilbara region of Western Australia.

The capital raising will consist of a combination of a private placement and a Share Purchase Plan (SPP), with the company stating that proceeds will primarily be directed toward advancing drilling at the Cane Bore project, alongside broader exploration and corporate activities.

Burley Minerals shares closed unchanged at AUD 0.025 on 14 May 2026. Despite the flat session performance, the stock remains down approximately 50% over the past year as investors continue monitoring exploration progress and funding developments across the company’s project portfolio.

The company stated that it has already received firm commitments to raise approximately AUD 0.7 million before costs through a placement to sophisticated and institutional investors. The placement involves the issue of approximately 30.4 million fully paid ordinary shares at an issue price of AUD 0.023 per share.

According to the company, the placement price represents an 8.0% discount to the last closing price and a 17.9% discount to the five-day Volume weighted average price (VWAP) leading into the announcement.

Bold Expansion Plans for Cane Bore Project

Management indicated that the fresh funding is expected to play an important role in progressing drilling activities at the Cane Bore Iron Ore Project, located near Onslow within the West Pilbara region.

Burley Minerals Managing Director and CEO Stewart McCallion stated that a heritage survey has already been scheduled for next month, while drilling permits for the project have been granted.

The company added that the Cane Bore project benefits from proximity to infrastructure and ease of access, which may support operational efficiency once drilling activities commence.

Management also noted that drilling mobilisation is expected to occur as soon as the project receives final clearance following the heritage survey process.

The Cane Bore Iron Project forms one of Burley Minerals’ key exploration Assets and is located within the Hamersley Iron Ore Province, regarded globally as one of the major iron ore producing regions.

The project includes more than 370 hectares of high-lying channel iron deposit (CID) mineralisation spread across an 18-kilometre strike length.

Importantly, the company highlighted that the Cane Bore deposit sits within hauling distance of the Port of Ashburton near Onslow, with sealed road access located approximately 30 kilometres from the target areas.

Management believes the project’s infrastructure positioning may provide logistical advantages relative to more remote iron ore deposits.

Placement Details and Investor Participation

The placement component of the raising is expected to settle on 19 May 2026, with allotment and commencement of normal trading of the new placement shares scheduled for 20 May 2026.

Burley Minerals stated that the placement shares will be issued under the company’s available placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A, meaning Shareholder approval will not be required.

The new shares issued under the placement will rank equally with existing ordinary shares already on issue.

In connection with the placement, Yelverton Capital Pty Ltd has been appointed lead manager to the transaction.

Under the agreement, the lead manager will receive a fee of up to 6% of funds raised. Burley Minerals has also agreed to issue 10 million Options exercisable at AUD 0.05 with a three-year expiry term, subject to shareholder approval.

Share Purchase Plan Opens to Existing Shareholders

Alongside the institutional placement, Burley Minerals will also provide eligible shareholders with the opportunity to participate in a Share Purchase Plan targeting approximately AUD 0.3 million.

Eligible shareholders registered at 5:00pm AWST on 13 May 2026 with addresses in Australia or New Zealand will be entitled to participate in the SPP.

Under the offer, shareholders may apply for up to AUD 30,000 worth of new shares at the same issue price as the placement, being AUD 0.023 per share.

The company noted that the SPP will not be underwritten.

Burley Minerals also stated that it retains discretion to close the offer early, accept oversubscriptions, scale back applications or withdraw the SPP depending on overall Demand levels and application outcomes.

If scale-back measures become necessary, the company indicated that allocation decisions may consider several factors, including shareholder holdings at the Record Date, application timing and trading activity around the Offer Period.

The SPP is expected to open on 21 May 2026 and close on 5 June 2026, with results anticipated to be announced on 10 June 2026.

New shares issued under the SPP are scheduled for Quotation on 13 June 2026.

Use of Funds Extends Beyond Iron Ore

While the Cane Bore drilling program represents the primary focus of the raising, Burley Minerals also outlined several additional uses for the incoming capital.

The company stated that proceeds may also support exploration activities at its Chubb Lithium Project located in Québec, Canada.

Burley acquired full ownership of the Chubb Lithium Project in February 2023. The project covers approximately 1,509 hectares and is situated near the Mining region of Val d’Or.

According to the company, the project lies less than 15 kilometres from Canada’s North American Lithium operation, which remains one of the country’s operating lithium mines.

Burley Minerals noted that only a limited portion of the project’s 35 mineral claims has been drill tested to date, despite identification of what the company described as a significant fertile lithium-caesium-tantalum pegmatite system.

Beyond exploration spending, proceeds may also support potential acquisitions, issue-related costs and general working capital requirements.

Pilbara Exposure Remains a Key Focus

The Pilbara region continues to attract ongoing exploration and development activity due to its established iron ore infrastructure and long-standing export network.

Burley Minerals’ Cane Bore asset sits within the broader Hamersley Province, which hosts several major iron ore operations and infrastructure corridors.

The company’s emphasis on progressing a maiden drilling campaign at Cane Bore indicates that exploration advancement remains a near-term operational priority.

Management’s comments around heritage approvals, drilling permits and infrastructure proximity suggest the company is working toward moving the project into its next exploration phase.

For junior exploration companies, access to capital often remains central to advancing field programs and maintaining project momentum, particularly in resource sectors where drilling and evaluation programs can require ongoing funding support.

What This Means for Investors?

Burley Minerals’ latest update highlights the company’s intention to accelerate exploration activities at its Pilbara iron ore assets through a new AUD 1 million funding initiative.

The combination of a placement and Share Purchase Plan provides both institutional investors and existing shareholders with participation opportunities at a discounted issue price.

Investors may now focus on upcoming milestones associated with the Cane Bore drilling program, including completion of heritage surveys and mobilisation of drilling activities.

The update also reinforces the company’s broader exploration exposure across both iron ore and lithium assets spanning Western Australia and Canada.

While Burley Minerals shares closed flat on the day of the announcement, the funding package positions the company to continue advancing exploration activities across its portfolio during 2026.