New Murchison Gold Ignites Crown Prince Mine, Raises $15M to Fuel Production
New Murchison Gold Limited has secured all key approvals and mobilised equipment for mining at its Crown Prince Gold Project, with first ore delivery expected by September 2025. The company also announced a $15 million capital raise to support its transition from explorer to producer.
- All mining and environmental approvals received for Crown Prince project
- First blast scheduled for 30 June 2025, marking start of mining operations
- Firm commitments secured for $12 million placement and $3 million share purchase plan
- Ore delivery to Westgold’s BBGO plant expected at 40,000 tonnes per month with +4g/t gold grade
- Transition from exploration to production underway with major contracts awarded and site mobilisation complete
Approvals and Project Greenlight
New Murchison Gold Limited (ASX, NMG) has reached a pivotal milestone in its development journey with the receipt of all necessary mining and environmental approvals for its Crown Prince Gold Project, located within the Garden Gully Gold Project near Meekatharra, Western Australia. This regulatory greenlight includes the approval of the Mining Proposal and Mine Closure Plan, clearing the path for the company to commence mining operations.
The company’s board has made a positive final investment decision, signalling a strategic shift from exploration to production. This transition is underscored by the execution of major contracts with experienced contractors, including Ozland Mining Services Pty Ltd for open pit mining, ensuring operational readiness and quality delivery.
Mining Commencement and Operational Mobilisation
Site mobilisation is well underway, with critical mining equipment such as excavators, dump trucks, and water infrastructure already on location. The first blast is scheduled for 30 June 2025, marking the official start of mining activities. Following this, the company plans to stockpile ore and commence crushing in July and August, respectively.
Ore is expected to be delivered to Westgold Resources Limited’s BBGO plant starting September 2025, at an anticipated rate of approximately 40,000 tonnes per month with an average grade exceeding 4 grams of gold per tonne. This production schedule is projected to continue for at least 24 months, with potential for extension as mine planning evolves.
Capital Raising to Support Growth
To underpin working capital requirements ahead of revenue generation, New Murchison Gold has secured firm commitments for a $12 million equity placement priced at $0.017 per share, representing a modest discount to the prevailing share price. This placement will be issued in two tranches, with the second tranche subject to shareholder approval.
In addition, the company is launching a $3 million share purchase plan (SPP) at the same price, providing existing shareholders an opportunity to participate. The capital raise is designed to cover remaining pre-production capital expenditure, operational costs, corporate expenses, and discretionary exploration, positioning the company strongly for its upcoming production phase.
Strategic Outlook and Market Positioning
CEO Alex Passmore highlighted the significance of these developments, emphasizing the company’s readiness to rapidly bring Crown Prince into production and generate revenue starting October 2025. The project benefits from a robust feasibility study and a maiden Ore Reserve, reinforcing confidence in the mine’s economic potential.
While ancillary permits such as the 5C Licence to Take Water are still pending, the company anticipates timely receipt without impacting the initial mining schedule. The partnership with Westgold Resources for ore processing further strengthens operational synergies and market access.
Overall, New Murchison Gold’s progress at Crown Prince marks a critical inflection point, transitioning the company from a junior explorer to a gold producer with tangible output and cash flow prospects.
Bottom Line?
With mining imminent and capital secured, New Murchison Gold is poised to deliver on its promise of production and growth in the Murchison goldfield.
Questions in the middle?
- How will ore delivery volumes and grades evolve beyond the initial 24-month schedule?
- What impact will the pending 5C water licence have on mining operations and costs?
- How will market conditions and gold prices affect the company’s financial outlook post-production start?
