Why Is Nexus Minerals (ASX:NXM) Raising Capital for Drilling at the Wallbrook Gold Project?

Sonal Goyal

09 October 2026 12:12 AM AEDT

Why Is Nexus Minerals (ASX:NXM) Raising Capital for Drilling at the Wallbrook Gold Project?

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Gold explorers fund drilling campaigns through institutional placements, often at a discount to recent prices. Nexus Minerals Limited (ASX:NXM) announced on 21 September 2026 a A$5.4 million Placement to advance the Wallbrook Gold Project.

Company overview

Nexus Minerals Limited (ASX:NXM) is a gold explorer with the Wallbrook Gold Project in Western Australia, including the Payns and Branches prospects, and a NSW mineral project.

Placement terms

Firm commitments were received for about 101.9 million shares at A$0.053 each, to raise about A$5.4 million. The price is an 8.6% discount to the last close of A$0.058 on 16 September 2026, and a 9.9% and 10.6% discount to the 5-day and 10-day VWAPs. The shares are issued in a single Tranche using existing placement capacity. Nexus expects to hold more than A$8.7 million in cash after settlement.

Use of funds

Funds will go to aircore drilling of regional targets, RC drilling at existing prospects, diamond drilling to improve the resource category at Payns and Branches, target generation in NSW, Geophysical surveys and working capital.

Where the funds fit in the Wallbrook program

The Payns and Branches prospects are the focus of the plan to improve geological confidence and the resource category. Moving a resource from Inferred to Indicated generally needs closer-spaced drilling and good-quality core, which is why the placement includes funding for diamond drilling.

Aircore drilling of priority regional targets can test large areas quickly at shallow depth, while RC drilling is typically used to advance existing prospects. The announcement does not give meterage targets or a timeline for each type of drilling, so shareholders will rely on future announcements for those details.

Offer price and discounts

The A$0.053 Offer Price represents an 8.6% discount to the closing price on 16 September 2026, a 9.9% discount to the 5-day VWAP of A$0.0588 and a 10.6% discount to the 10-day VWAP of A$0.0593. Placements priced at a discount are common, and the size of the discount reflects market conditions and Demand at the time of the raising.

Placement mechanics

The placement is by a single tranche using the company’s existing placement capacity under Listing Rules 7.1 (41,886,793 shares) and 7.1A. Support came from North American long-only investors, Australian institutions and existing shareholders, according to the announcement. The offer was not for release to US wire services or distribution in the United States.

At A$0.053, the price is below the A$0.058 last close, and Nexus expects cash of more than A$8.7 million before costs after settlement.

Planned exploration

The Wallbrook program includes aircore drilling of priority regional targets, RC drilling to advance existing prospects and diamond drilling to improve geological confidence and the resource category at Payns and Branches. Funds also support high-priority target generation at the NSW Mineral Project and geophysical surveys.

Sector backdrop

Gold explorers in Western Australia typically raise Equity in line with drilling programs, and resource upgrades depend on drilling density.

Resource category improvement, such as moving Inferred resources to Indicated, generally requires closer-spaced drilling and diamond core for geological confidence. This is an intermediate step towards feasibility studies.

Raisings at discounts to recent trading prices are common in the sector, and the size of the discount varies with market conditions.

Risks shareholders should weigh

The placement dilutes existing holders at a discount. The program’s results are uncertain.

Resource category improvement depends on diamond drilling outcomes.

Further funding may be needed.

New shares issued under the placement increase the share count by about 101.9 million, which dilutes existing holders.

Drilling may not upgrade resource categories or extend mineralisation, and exploration budgets are finite.

What’s next

Nexus will deploy funds on drilling. Shareholders may wish to watch for drilling results and resource updates.

Shareholders may wish to watch for the placement settlement and drilling results from Wallbrook.

FAQs

Q: How much was raised?

A:About A$5.4 million at A$0.053 per share.

Q: What will funds be used for?

A:Drilling at Wallbrook, NSW target generation, geophysics and working capital.

Q: What cash will Nexus hold?

A:More than A$8.7 million before costs.

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