Small explorers often raise funds through placements with attaching options. Surefire Resources NL (ASX:SRN) announced on 5 October 2026 a Capital raising of up to A$2.61 million to advance the Yidby Gold Project.

Company overview

Surefire Resources NL (ASX:SRN; FSE:GBL) is an ASX-listed explorer with West Australian projects, including the Yidby Gold Project.

Placement terms

Firm commitments were received for up to 145,000,000 shares at A$0.018, with one free attaching option per share, exercisable at A$0.05 and expiring on 30 June 2029. The first Tranche of up to 45,000,000 shares uses existing Placement capacity, and the second tranche of up to 100,000,000 shares and all Options require Shareholder approval. Funds are expected about 15 October and 18 November 2026.

CPS Capital Group is lead manager, receiving 2% management and 4% placement fees plus 31,000,000 broker options at A$0.00001, subject to approval.

Entitlement offer and use of funds

A non-renounceable offer of one option for every two shares at A$0.001 would raise up to A$90,500, for holders in Australia and New Zealand on the 15 October 2026 record date, and closes on 29 October 2026. Funds will go to developing the Yidby Gold Project, other West Australian projects, Working Capital and potential acquisitions.

Fees, options and dilution

The lead manager’s package comprises a 2% management fee, a 4% placement fee on funds raised and 31,000,000 broker options with the same terms as the placement options, issued at A$0.00001 each and subject to shareholder approval. Placement options, entitlement options and broker options all carry an exercise price of A$0.05 and expire on 30 June 2029.

If every option were exercised, the share count would rise further. The company has not stated the number of shares currently on issue in this announcement.

Share and option mechanics

The first tranche of up to 45,000,000 shares uses Listing Rule 7.1 capacity (up to 27,000,000) and Listing Rule 7.1A capacity (up to 18,000,000). The second tranche of up to 100,000,000 shares and all attaching options need shareholder approval. The A$0.018 issue price meets the minimum issue price requirement for Listing Rule 7.1A.

Subscription funds for the first tranche are expected around 15 October 2026, and for the second tranche around 18 November 2026. The offer of the options will be made under a prospectus expected around 9 October 2026.

Entitlement offer timetable

The Record Date for the entitlement offer is 15 October 2026, and the closing date is 29 October 2026, with the last day to extend the closing date on 26 October. Options offered would have the same terms as the placement options, and the offer is not extended to holders outside Australia and New Zealand.

Sector backdrop

Option-attached placements dilute holders if options are exercised, and small raisings fund short work programs.

Small-cap explorers frequently pair placements with free attaching options to make a raising more attractive, and options can be listed to provide liquidity. If the options are exercised, the company receives additional funds, but the number of shares on issue rises.

The Western Australian goldfields have many small development-stage projects that depend on periodic Equity raisings for drilling and studies.

Risks shareholders should weigh

Tranche 2 and the options require shareholder approval. Fees reduce net proceeds.

Existing holders are diluted by up to 145 million shares plus options.

Exploration outcomes are uncertain and further funding may be needed.

The option exercise price of A$0.05 is well above the placement price of A$0.018, so exercise depends on the share price rising.

Fees of 6% plus broker options reduce the net amount available for exploration.

What’s next

A prospectus is expected around 9 October 2026 and the entitlement offer closes on 29 October. Shareholders may wish to watch for the prospectus and meeting notice.

Shareholders may wish to watch for the prospectus, the meeting notice for approvals and the outcome of the first tranche.

Disclaimer: Surefire Resources (ASX:SRN) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this article, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this article.