Sipa Resources Accelerates Gold Growth with $1.75M Raise and Key Acquisition

Strategic Acquisition Expands Sipa's Gold Portfolio

Sipa Resources Limited (ASX: SRI) has taken a decisive step forward in its gold exploration strategy with the completion of its acquisition of four advanced gold projects spanning South Australia and Western Australia. The newly acquired assets include the Tunkillia North, Nuckulla Hill, and Skye projects in South Australia, collectively covering around 729 square kilometres, and the Crown project in Western Australia, covering approximately 30 square kilometres.

These projects are strategically positioned near established gold deposits such as the Tunkillia gold deposit and the Challenger gold mine, offering Sipa a promising platform to ramp up exploration activities. The Crown project’s proximity to Kalgoorlie, a renowned mining hub, further enhances its potential.

Capital Raising and Board Strengthening

Supporting this acquisition, Sipa successfully completed a $1.75 million capital raising through a placement of 134.6 million new shares at 1.3 cents each, accompanied by free attaching options. This funding round attracted institutional and sophisticated investors, including seed investors familiar with the newly acquired projects, underscoring market confidence in Sipa’s growth trajectory.

In a significant governance development, Stephen Biggins, a geologist with three decades of global exploration and mining experience, has joined Sipa’s board as a non-executive director and become the company’s largest shareholder. Biggins’ track record includes leading Core Lithium from discovery to a $2 billion market cap and spearheading major gold discoveries, positioning him as a valuable asset to Sipa’s leadership team.

Financial and Contractual Details

The upfront acquisition consideration comprised a $200,000 cash payment and the issue of 53.6 million Sipa shares valued at $750,000 based on a 5-day VWAP of 1.3 cents per share. These shares are subject to a six-month escrow period for Biggins. Deferred consideration includes 35.7 million shares (valued at $500,000) payable in February 2026, contingent on shareholder approval, or alternatively cash payment. Additionally, a milestone payment of $750,000 is due upon reporting a JORC-compliant inferred resource of 100,000 ounces of gold from the acquired tenements.

Outlook and Market Positioning

With a strengthened balance sheet and an expanded portfolio of highly prospective gold projects, Sipa is well-positioned to accelerate exploration activities year-round. The company’s diversified asset base across proven geological terrains and near infrastructure hubs enhances its potential to unlock value for shareholders.

Stephen Biggins’ appointment signals a strategic intent to leverage his expertise in advancing exploration and corporate development. His involvement may also attract further investor interest and partnerships, potentially catalysing Sipa’s evolution from an explorer to a significant gold producer.