Highlights

  • Evergold shares fell 8.51% on 6 February 2026, despite announcing a AUD 5.23 million capital raising to fund gold exploration in Western Australia.
  • Placement priced at AUD 0.035 per share through two approved funding tranches.
  • Funds to support drilling and exploration across Mt Monger and Leonora project
  • Directors to participate in Tranche 2, subject to upcoming shareholder approval.

Evergold Minerals Ltd (ASX:EG1) came under selling pressure on 6 February 2026, with the stock declining 8.51% on the day. Despite the session’s weakness, the stock remains higher by 43.33% over the past month, highlighting recent volatility around company-specific developments and capital market activity.

Today’s decline came despite the Evergold’s announcement of a capital raising aimed at advancing its gold exploration portfolio in Western Australia.

The company confirmed it had received firm commitments to raise AUD 5.23 million before costs via the issue of 149,428,572 fully paid ordinary shares at an issue price of AUD 0.035 per share. The placement was managed by CPS Capital Group Limited and attracted participation from sophisticated and professional investors.

The capital raising is structured in two tranches. Tranche 1 involves the issue of 59,066,785 shares to non-related parties under existing ASX Listing Rule capacity. Tranche 2 includes 90,361,787 shares and is subject to shareholder approval at a forthcoming general meeting. This second tranche also includes shares allocated to company directors.

Exploration Focus in Western Australia

Proceeds from the placement are earmarked for exploration activities across Evergold’s Western Australian assets. At the Mt Monger Gold Project, drilling, field exploration, and gravity surveys are scheduled to commence during the current quarter. The program targets areas including the Duchess of York and Kiaki Soaks prospects, where historical drilling results have been reported.

At the Leonora Goldfields Project, the company plans to continue regional exploration and project advancement activities. This work builds on an existing 63,000-ounce inferred gold resource, alongside heritage approval processes involving Traditional Owners.

Additional allocation of funds will support drilling and geophysical work at Victor Bore and Craigs Rest, as well as general working capital and costs associated with the capital raising.

 

 

Director Participation and Governance

Directors have indicated an intention to participate in the placement for up to AUD 230,000, equivalent to 6,571,429 shares, subject to shareholder approval. This participation forms part of Tranche 2 and will be voted on at the upcoming general meeting.

What Investors Are Watching

Market participants are now monitoring how the newly raised funds are deployed across exploration programs, the timing of drilling activities, and the outcome of shareholder approvals linked to the second tranche of the placement.

 

FAQs

How much capital did Evergold Minerals raise?

Evergold secured firm commitments to raise AUD 5.23 million before costs.

What will the AUD 5.23 million be used for?

The funds will support gold exploration, drilling programs, project approvals, and working capital in Western Australia.

Does the capital raising require shareholder approval?

Yes, part of the AUD 5.23 million placement is subject to shareholder approval at a general meeting.