Clara Raises $1.25M, Prepares Ashford Drilling to Upgrade Coal Resource
Clara Resources is gearing up for a pivotal drilling campaign at its Ashford Coking Coal Project while successfully raising $1.245 million through an entitlement offer and placement. The company also navigates significant board changes and continues exploration at its Kildanga Nickel/Cobalt project.
- Ashford drilling program preparations near completion with field work expected in Q2 2025
- Raised $1.245 million via entitlement offer and placement, with ongoing efforts to place shortfall shares
- Board reshuffle following director resignations, with a streamlined three-member board appointed
- Exploration continues at Kildanga Nickel/Cobalt project amid considerations for potential divestment
- Financials show steady cash position supporting operations for approximately 1.5 quarters
Ashford Project Drilling Set to Upgrade Resource Status
Clara Resources Limited (ASX: C7A) is finalising preparations for a critical Resource and Quality Drilling Program at its 100%-owned Ashford Coking Coal Project in New South Wales. The program, scheduled to commence in the second quarter of 2025, will include four cored holes and nine chip holes designed to upgrade the existing JORC resource classification to Measured and Indicated. This upgrade is essential for refining the mining plan, enhancing coal preparation studies, and improving cost accuracy ahead of the pre-feasibility study.
Ecological and cultural heritage assessments have been completed, and the necessary NSW government permits are in place. The drilling campaign aims to verify seam depth, thickness, and structure while improving coal quality data, including coking properties and washability, key factors for the project's economic viability.
Capital Raise Bolsters Funding Amid Ongoing Exploration
In December 2024, Clara launched an accelerated non-renounceable pro-rata entitlement offer (ANREO) alongside a placement to institutional investors, targeting approximately $2.12 million in total. By the end of February 2025, the company had raised $1.245 million, including $73,000 from the retail entitlement offer component. Clara continues to seek commitments for shortfall shares from institutional and high-net-worth investors, with the possibility of further capital raising initiatives.
Proceeds from these capital raises have been used to repay director loans related to the acquisition of the remaining 60% interest in the Ashford Coal Project from Savannah Goldfields Ltd. The company’s financial disclosures indicate a stable cash position of $334,000 at quarter-end, with funding estimated to support operations for approximately 1.5 quarters.
Board Restructuring and Governance Updates
The quarter saw significant governance developments, including the resignation of directors Brian Moller and Nicholas Mather in March 2025 following shareholder actions initiated by a group holding over 5% of shares. Subsequently, Clara streamlined its board to three members: Richard Willson as Non-Executive Chairman, Alex Fitzgerald as Non-Executive Director, and Peter Westerhuis as Managing Director and CEO.
Cost management remains a priority, with the board approving reduced remuneration and enabling directors to receive shares in lieu of cash payments. Shareholder approval was secured for several resolutions at the March 2025 general meeting, including share issuances to directors under the ANREO shortfall and a Directors' Fee Share Plan.
Kildanga Nickel/Cobalt Project Under Review
Clara continues to compile and analyze historical geological data across its 100%-owned Kildanga Nickel/Cobalt project in Queensland. Efforts focus on establishing comprehensive borehole and geochemical databases, conducting geophysical reviews, and developing a new geological model. These activities aim to identify a mineralized resource suitable for economic extraction.
The company is actively considering all strategic options for Kildanga, including potential divestment, reflecting a pragmatic approach to portfolio management as it prioritizes advancing the Ashford coal project.
Outlook and Market Position
Clara Resources is positioning itself for a transformative phase with the upcoming Ashford drilling program expected to deliver critical data for project advancement. The successful capital raise and board restructuring provide a foundation for disciplined execution. However, the company faces the typical challenges of junior resource explorers, including securing sufficient funding beyond the near term and navigating market uncertainties.
Investors will be watching closely for drilling results, the outcome of shortfall share placements, and strategic decisions regarding the Kildanga project, all of which will shape Clara’s trajectory in the coming months.
Bottom Line?
Clara’s next quarter will be pivotal as drilling results and capital placement outcomes will determine its path from exploration to development.
Questions in the middle?
- Will Clara successfully place all shortfall shares to fully fund the Ashford drilling program?
- What impact will the new resource classification have on the Ashford project’s valuation and financing options?
- How will Clara’s strategic decisions on the Kildanga Nickel/Cobalt project influence its portfolio and capital allocation?
