North Stawell Minerals Raises $518K, Eyes Shortfall Placement to Boost Exploration

Entitlement Offer Results

North Stawell Minerals Ltd (ASX – NSM) has announced the results of its recent 2-for-9 non-renounceable entitlement offer, which closed on 25 July 2025. The offer aimed to raise approximately $2.1 million by issuing new shares at 3 cents each. However, the company accepted applications for only 17.27 million new shares, raising about $518,123 before costs, significantly below the maximum target.

This shortfall highlights a tempered appetite among existing shareholders to fully participate in the capital raising at the current offer price, a factor that could reflect market sentiment or investor caution in the gold exploration sector.

Shortfall Placement Strategy

To address the shortfall, North Stawell Minerals’ board has reserved the right to place the remaining shares within three months after the offer’s closing date. This placement, potentially conducted via a bookbuild managed by lead manager GBA Capital Pty Ltd, will seek to attract new or existing investors to subscribe for the shortfall shares. The timing and pricing of this placement remain subject to market conditions and regulatory requirements.

This approach provides the company with flexibility to secure additional funds while managing dilution and investor relations carefully.

Use of Funds and Exploration Outlook

The gross proceeds raised will be directed primarily towards advancing exploration programs at the Darlington project, secondary projects, and ongoing reviews of the Wildwood and other key prospects within the Stawell Mineralised Corridor in Victoria. This region is known for its significant gold endowment, with the Stawell Gold Field having produced over five million ounces historically.

North Stawell Minerals’ strategy focuses on uncovering large-scale gold deposits concealed beneath cover, leveraging geological models based on the nearby Magdala orebody. The company’s granted tenure covers 504 square kilometers, offering substantial exploration upside if the current programs yield positive results.

Market and Investor Implications

While the partial subscription to the entitlement offer may raise questions about investor confidence, the company’s proactive stance on placing shortfall shares indicates a commitment to securing necessary funding. The success of the shortfall placement will be a key indicator of market appetite for North Stawell Minerals’ growth prospects and could influence the company’s ability to accelerate exploration activities.

Investors will be watching closely for updates on the shortfall placement execution and any adjustments to exploration budgets or timelines that may follow.