114.8 Million Shares Issued at 1.4 Cents in Oversubscribed Placement
Sipa Resources has successfully raised A$1.61 million through a strongly supported placement, positioning the company to advance multiple gold exploration projects across South Australia and Western Australia.
- Raised A$1.61 million via placement of 114.8 million shares at 1.4 cents each
- Strong backing from existing major shareholders and new investors
- All four directors to participate, pending shareholder approval
- Funds earmarked for drilling at Bimba, Sheoak, Tunkillia North, Nuckulla Hill, and Crown projects
- Extraordinary general meeting scheduled for early September to approve director shares and lead manager options
Capital Raising Success
Sipa Resources Limited (ASX, SRI) has completed a well-supported capital raising, securing A$1.61 million before costs through the issuance of 114.8 million new shares priced at 1.4 cents each. The placement attracted strong interest from both existing major shareholders and new sophisticated investors, underscoring confidence in the company’s exploration strategy.
The placement was led by Baker Young and was oversubscribed, reflecting robust market appetite for Sipa’s growth prospects. Notably, all four directors have committed to participate in the raising, subject to shareholder approval, signaling alignment between management and investors.
Funding Exploration Ambitions
The freshly raised capital will primarily fund ongoing and planned drilling programs across several key gold projects. These include reverse circulation (RC) drilling at Bimba and Sheoak, which has already commenced, as well as upcoming aircore drilling campaigns at Tunkillia North, Nuckulla Hill, and the Crown Gold Project near Kalgoorlie.
Managing Director Andrew Muir emphasized the importance of this funding runway, stating that the company is advancing plans to test large-scale gold-in-calcrete anomalies and follow up on historical geochemical targets. The exploration focus on both South Australian and Western Australian assets reflects a balanced approach to unlocking value across Sipa’s portfolio.
Capital Structure and Governance
Post-raising, Sipa’s capital structure will expand to approximately 531 million fully paid ordinary shares, with an additional 8 million unlisted options proposed for the lead manager. The issuance of shares to directors and options to Baker Young will be subject to shareholder approval at an extraordinary general meeting scheduled for early September.
This governance step ensures transparency and shareholder oversight on key equity issuances, maintaining alignment with best practice corporate governance standards.
Looking Ahead
With funds secured and drilling programs underway or imminent, Sipa is positioned to deliver meaningful exploration results in the coming months. Investors will be keenly watching assay outcomes and progress updates, which will be critical in validating the company’s exploration thesis and driving future value.
Bottom Line?
Sipa’s successful capital raise sets the stage for a pivotal exploration phase, but the market will await drilling results to confirm the potential upside.
Questions in the middle?
- Will shareholder approval be granted for director share issues and lead manager options?
- How will upcoming drilling results impact Sipa’s valuation and investor sentiment?
- What is the timeline for assay results from the current and planned drilling programs?
