Leeuwin Raises A$3.25m at $0.098 per Share Ahead of Marda Acquisition
Leeuwin Metals has secured A$3.25 million through a two-tranche placement, positioning the company to complete its transformative Marda Gold Project acquisition and ramp up exploration across Australia and Canada in 2025.
- A$3.25 million raised via two-tranche placement at $0.098 per share
- Funds to support Marda Gold Project acquisition completion in Q1 2025
- Strong investor demand from existing and new shareholders
- Directors committed A$250,000 subject to shareholder approval
- Exploration programs planned across Australian and Canadian assets
Capital Raising Success
Leeuwin Metals Ltd (ASX: LM1) has successfully raised A$3.25 million through a two-tranche placement aimed at fueling its exploration ambitions and finalising the acquisition of the Marda Gold Project. The placement, priced at $0.098 per share, attracted strong demand from both institutional and sophisticated investors, reflecting confidence in Leeuwin’s strategic direction.
The first tranche, raising approximately A$1.55 million, was issued under existing placement capacity, while the second tranche, worth around A$1.7 million, awaits shareholder approval at an extraordinary general meeting (EGM) scheduled for February 2025. Directors and management have also committed roughly A$250,000 to the raising, underscoring their alignment with shareholder interests.
Strategic Acquisition of Marda Gold Project
The capital injection comes at a pivotal moment as Leeuwin prepares to complete its acquisition of the Marda Gold Project from Ramelius Resources (ASX: RMS), anticipated in the first quarter of 2025. Located in Western Australia’s prolific goldfields, Marda represents a significant addition to Leeuwin’s portfolio, offering substantial growth potential through its proximity to key infrastructure and processing facilities.
Executive Chairman Christopher Piggott highlighted the transformative nature of the acquisition, stating that the funding will enable comprehensive drill programs and exploration activities post-completion. This move positions Leeuwin to unlock value in one of Australia’s most renowned gold regions while maintaining momentum across its broader asset base.
Exploration and Growth Outlook
Beyond Marda, Leeuwin plans to accelerate exploration across its diversified portfolio, which includes projects in both Australia and Canada. These assets span high-grade iron ore in the West Pilbara and critical battery metals such as nickel, copper, PGE, and lithium, aligning with global demand trends.
The company’s focus over the next 12 to 24 months will be on targeted exploration of mined and unmined prospects, with no immediate plans to restart production at Marda. The capital raising proceeds, combined with existing cash reserves, will also cover corporate and working capital requirements, ensuring operational flexibility.
Incentives and Governance
In conjunction with the placement, Leeuwin intends to issue approximately 6.5 million performance rights linked to value-generative milestones, alongside broker options exercisable at $0.1715 per share, both subject to shareholder approval. These incentives aim to align management and investor interests as the company advances its growth strategy.
Shaw and Partners led the placement as bookrunner, with Cumulus Wealth and Leeuwin Wealth acting as co-managers. Notably, the placement was not underwritten, highlighting the strong organic demand from the market.
Bottom Line?
Leeuwin’s successful capital raise and imminent Marda acquisition set the stage for a potentially transformative year of exploration and growth.
Questions in the middle?
- Will the Marda Gold Project acquisition close on schedule in Q1 2025?
- How will exploration results from Marda and other assets influence Leeuwin’s valuation?
- What milestones will trigger the performance rights issuance and how will they impact shareholder value?
