On 8 October 2026, Ballard Mining Limited (ASX:BM1) released a Capital raising presentation for a proposed non-underwritten Placement to raise approximately A$45.0 million, together with a non-underwritten share purchase plan (SPP) targeting about A$5.0 million. The presentation relates to the company’s Mt Ida gold project in Western Australia.

Placement and SPP terms

The placement involves about 68.2 million new shares at an issue price of A$0.66, representing about 15.0% of existing shares on issue, issued within the company’s Listing Rule 7.1 capacity. The price is a 7.7% discount to the last close of A$0.715 on 7 October 2026 and a 16.2% discount to the 10-day VWAP of A$0.788.

Eligible shareholders in Australia and New Zealand can apply under the SPP on the same terms. The SPP target is about A$5.0 million, and Ballard may scale back applications or accept up to an additional A$5.0 million. Argonaut Securities and Canaccord Genuity are joint lead managers and bookrunners, with Commonwealth Securities as co-manager.

Sources and uses of funds

Sources total A$94.1 million, comprising cash on hand of A$44.1 million (unaudited at 30 September 2026) and capital raising proceeds of A$50.0 million before costs. Uses include A$20 million for growth drilling beyond the existing resource, A$20 million for infill drilling, A$28 million for a 250-person accommodation village, A$10 million for process plant engineering (FEED), A$3.5 million for a public road diversion and dewatering bores, A$3 million for a feasibility study and A$9.6 million for working capital. Costs of the raising are estimated at A$1.8 million to A$2.3 million.

The company noted the uses are a statement of current intentions and actual expenditure may differ.

The project context in the presentation

The presentation cites a Mineral Resource of 20.4 million tonnes at 2.8 g/t gold for 1.84 million ounces, announced on 23 September 2026 and up 56% (658,000 ounces). Baldock open pit contains 516,000 ounces at 3.5 g/t, 85% Indicated, and Baldock underground contains 847,000 ounces at 3.4 g/t. Ballard is targeting a feasibility study and final Investment decision in mid-calendar 2027, with six rigs on site. About 60,000 metres of growth drilling has been completed since the resource cut-off date and about 40,000 metres of assays are outstanding.

Timetable

The placement launched on 8 October 2026, with the Trading halt lifted and bookbuild completion announced on 12 October. Settlement is on 16 October and allotment on 19 October. The SPP Record Date was 7 October, the offer opens on 19 October and closes on 9 November, with results on 13 November and issue on 16 November 2026.

Sector backdrop

Gold developers fund drilling, studies and early works through Equity raisings, often priced at a discount to the recent trading price. Placements to institutional investors are paired with share purchase plans to give existing holders a chance to participate on similar terms.

Resource growth, study outcomes and infrastructure such as accommodation villages are staged steps before a final investment decision.

Risks shareholders should weigh

The placement and SPP are not underwritten, so there is no guarantee that the funds sought will be raised. The presentation states that if the raising does not complete, Ballard would need alternative funding, and some Transaction Costs may still be payable.

The placement is priced at a discount, and shareholders who do not participate will be diluted. The SPP is limited to eligible holders in Australia and New Zealand.

The funds are for exploration and early works rather than production, and the feasibility study and final investment decision are targeted for mid-2027 and not assured. The resource and drilling results are subject to the usual geological, permitting and cost uncertainties. About 40,000 metres of assays are outstanding and could change the resource picture.

What’s next

Ballard expects to announce the bookbuild outcome on 12 October 2026, with the SPP opening on 19 October. Further steps are growth and infill drilling, process plant FEED, the accommodation village and a feasibility study. Shareholders may wish to watch for the raising outcome, drilling results and study milestones.