Nexus Minerals Secures A$8.1M to Fast-Track Wallbrook Gold Drilling
Nexus Minerals has raised A$8.1 million through an institutional placement led by North American investors, boosting its cash reserves to over A$12 million to accelerate exploration at the Wallbrook Gold Project in Western Australia.
- A$8.1 million raised via institutional placement at A$0.07 per share
- North American long-only institutions become substantial shareholders
- Cash reserves increase to more than A$12 million post-placement
- Funds earmarked for RC, diamond, and aircore drilling at Wallbrook
- Placement settlement expected on 6 May 2025 with trading from 7 May
Capital Injection to Accelerate Exploration
Nexus Minerals Limited (ASX: NXM) has successfully secured firm commitments for an A$8.1 million institutional placement, priced at A$0.07 per new share. This capital raise, led by specialist North American long-only institutional investors, significantly strengthens Nexus’s financial position, lifting its cash reserves to over A$12 million. The fresh funds are earmarked to accelerate exploration activities at the company’s flagship Wallbrook Gold Project in Western Australia.
The placement involves the issue of approximately 115.7 million new shares, representing a discount of 12.5% to the last closing price and around 9% to the recent volume-weighted average price. Settlement is scheduled for 6 May 2025, with new shares expected to commence trading on 7 May, following the lifting of the trading halt.
Strategic Backing from North American Institutions
Notably, two North American institutional investors have emerged as substantial shareholders through this placement, signaling strong international confidence in Nexus’s exploration strategy and the potential of the Wallbrook project. Managing Director Andy Tudor highlighted this as a validation of the company’s recent exploration results and its aggressive drilling plans.
“We are pleased with the support this very targeted capital raising has received,” Tudor said. “With approximately A$12 million in cash on hand, Nexus is well positioned to accelerate its exploration efforts and unlock value at Wallbrook.”
Focused Exploration Program at Wallbrook
The funds will primarily support a comprehensive drilling program, including aircore, reverse circulation (RC), and diamond drilling, designed to expand and define gold mineralisation at Wallbrook. Complementary geophysical surveys will also be conducted to refine targeting and improve the efficiency of exploration efforts.
Wallbrook is strategically located immediately north of Northern Star Resources’ Carosue Dam operations, a prolific gold mining hub in the Eastern Goldfields region. Nexus’s tenement package consolidates highly prospective geological terrane within a major regional structural corridor, enhancing the potential for significant gold discoveries.
Broader Portfolio and Future Prospects
Beyond Wallbrook, Nexus holds additional projects including the Pinnacles Gold Project adjacent to Carosue Dam and the Bethanga Porphyry Copper-Gold project in Victoria, as well as extensive tenure in New South Wales targeting gold, copper, and critical minerals. The company’s commitment to deploying innovative exploration techniques suggests a forward-looking approach to resource discovery and development.
Canaccord Genuity acted as sole lead manager and bookrunner for the placement, receiving unlisted options as part of their remuneration, which aligns their interests with Nexus’s future performance.
Bottom Line?
With fresh capital and strong institutional backing, Nexus is poised to accelerate its exploration push at Wallbrook, but investors will watch closely for drilling results that justify the optimism.
Questions in the middle?
- What initial drilling results can investors expect from the accelerated program at Wallbrook?
- How will the entry of North American institutions influence Nexus’s strategic direction?
- What are the potential dilution impacts on existing shareholders following the placement?
