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Highlights

  • $5 million raised via two-tranche placement at $0.023 per share
  • Funds allocated to Yundamindra and Kookynie Gold Projects exploration
  • Directors commit up to $0.7 million, pending shareholder approval

Arika Resources Limited (ASX: ARI) has secured firm commitments for a $5 million capital raising to support expanded exploration efforts across its Yundamindra and Kookynie Gold Projects in Western Australia. The placement will also contribute to general working capital requirements.

The capital raise comprises approximately 217 million fully-paid ordinary shares issued at $0.023 each, representing a 13.4% discount to the company’s five-day volume-weighted average price as of 29 April 2025. The placement is structured in two tranches: Tranche One will issue 147 million shares to raise approximately $3.4 million using existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Tranche Two, pending shareholder approval, will issue 70 million shares and includes up to $0.7 million in participation from company directors and related parties.

Directors’ participation includes the conversion of up to $200,000 in accrued director fees into equity on the same terms as other investors. All new shares will rank equally with existing ordinary shares on issue. Allotment for Tranche One is expected to take place on or around 8 May 2025.

Funds will primarily be directed toward exploration drilling and geological work at Arika’s two priority projects. The Yundamindra project will see immediate activity, with a drill rig already mobilising to site. Early targets include the Pennyweight Point and Landed at Last prospects. Further technical and fieldwork continues at Kookynie.

Joint Lead Managers for the placement were Canaccord Genuity (Australia) Limited and Bell Potter Securities Limited.