AuMEGA Metals locks In oversubscribed C$30m raise to accelerate gold drilling Proactive uses images sourced from Shutterstock

AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF, FRA:FRA: MA30) has closed the books on its oversubscribed C$30.1 million capital raise, turning away late investors as it moves swiftly to deploy funds across an expanded drilling campaign at its Cape Ray Gold Project in Newfoundland, Canada.

The raise was anchored by US-based Condire Investors LLC and attracted strong institutional appetite, with the company electing not to take on additional commitments despite continued inbound interest. AuMEGA is now pressing ahead with a structured two-tranche placement to get cash in the door quickly while managing its ASX listing rule obligations.

The C$30.1 million raise is split across three categories of securities:

Hard Dollar Units will raise up to C$16.4 million through the issue of approximately 409 million units priced at C$0.04 each. These units each carry a common share and a warrant to acquire an additional share at C$0.055, exercisable over 30 months. Premium Flow-Through Units target up to C$12.7 million at C$0.0544 per unit — a 36% premium to the hard dollar price — reflecting the Canadian tax advantages these shares carry for eligible investors. Approximately 233.4 million shares and warrants fall into this category. Rounding out the raise, Traditional Flow-Through Shares will contribute up to C$1 million at C$0.047 per share, a 17.5% premium to the hard dollar price, covering roughly 22.1 million shares.

Company insiders have also put their own money in, subscribing for 1.35 million HD Units and 851,064 Flow-Through Shares — a sign of confidence from those closest to the assets.

A two-tranche structure

To accelerate access to funds, AuMEGA has split the raise into two tranches. The first, covering 98.4 million Premium Flow-Through Units within the company's existing placement capacity, is expected to close around March 5, 2026. The second and larger tranche — covering the remaining 566 million shares and 544 million warrants — requires shareholder approval and is targeted for closure in early April 2026, following a Special Shareholder Meeting scheduled for the first week of that month.

Where the money goes

The primary focus is an expanded drilling push across three key target areas along its 110-kilometre Cape Ray-Valentine Shear Zone land package: Cape Ray, Cape Ray West (which includes the Isle aux Morts Granite intrusion), and Bunker Hill. Funds will also support ongoing target generation and early-stage exploration across the broader tenement, with a portion allocated to working capital and corporate costs.

Story Continues

The drilling campaign builds on an existing Mineral Resource of 450,000 ounces of Indicated gold and 160,000 ounces Inferred — a base the company is clearly looking to grow aggressively with this injection of capital.

Strategic backer B2Gold Corp, a major intermediate gold producer, is participating in the raise at no commission cost to AuMEGA, underlining the continued confidence of one of the company's most significant shareholders in the project's potential.

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