Yugo Metals Faces License Approval Hurdle Amid Critical Drilling Phase
Yugo Metals has raised $3.5 million to fund its first-ever diamond drilling program targeting gold anomalies at its Sinjakovo project in Bosnia. The company also advances community and regulatory engagement for its Sockovac license while maintaining a cautious cash position.
- Raised $3.5 million via placement at 16.67% discount
- Planned 1,000m diamond drilling at Sinjakovo to start November 2025
- Ongoing community consultations and government talks for Petrovo license
- Quarterly exploration spend of $119,000 with $0.6 million cash on hand
- Assessing potential acquisitions to complement existing portfolio
Capital Raise Fuels Exploration Ambitions
Yugo Metals Limited (ASX, YUG) has taken a significant step forward in its exploration strategy by securing $3.5 million through a two-tranche placement. This capital injection, announced post-quarter, is earmarked to finance a maiden diamond drilling program at the Sinjakovo project in Bosnia and Herzegovina, targeting gold anomalies identified through previous trenching and rock chip sampling.
The placement shares were issued at a 16.67% discount to the last closing price, reflecting a strategic move to attract investors ahead of the drilling campaign. The first tranche has been completed, with shareholder approval pending for the second tranche at the upcoming AGM.
Sinjakovo Project, Breaking New Ground
The planned drilling program at Sinjakovo represents the first-ever diamond drilling over its gold prospects. The company intends to execute a 1,000-metre program starting November 2025, initially drilling eight shallow holes up to 70 metres, followed by deeper holes up to 130 metres based on initial findings. This approach aims to validate promising historical results, including trenching intercepts of 61 metres at 1.5 grams per tonne gold and rock chips grading up to 8 grams per tonne gold.
Geological surveys, including an Induced Polarisation survey, have highlighted strong chargeability anomalies, reinforcing the potential for an epithermal gold-antimony system controlled by structural features such as thrust faults and diatreme breccias. The project’s location within the Tethyan metallogenic belt, a prolific mining region in Europe, adds further geological appeal.
Progress at Sockovac (Petrovo) and Broader Portfolio
Meanwhile, Yugo Metals continues its community engagement and regulatory discussions concerning the pending approval of the Petrovo exploration license, which covers historically significant nickel, zinc, lead, gold, and silver mineralisation. The company remains optimistic about securing this license, which would unlock further exploration opportunities.
Beyond Bosnia, Yugo is actively exploring additional prospects and evaluating potential acquisitions in tier-one jurisdictions to diversify and strengthen its asset base. This strategic outlook aims to enhance shareholder value by building a complementary portfolio of battery and precious metals projects.
Financial Position and Outlook
During the September quarter, Yugo Metals reported a net cash outflow of approximately $0.3 million, ending with a cash balance of around $0.6 million. Exploration expenditure was modest at $119,000, reflecting the preparatory phase ahead of drilling. The recent capital raise significantly improves the company’s funding runway, although the second tranche remains subject to shareholder approval.
With field teams ready to mobilise upon license grant and drilling set to commence imminently, Yugo Metals is poised to deliver critical exploration results that could reshape its prospects. Investors will be watching closely as the company transitions from surface sampling to subsurface testing.
Bottom Line?
Yugo Metals’ upcoming drilling at Sinjakovo and license progress at Petrovo will be pivotal in defining its next growth phase.
Questions in the middle?
- Will the Sinjakovo drilling confirm the high-grade gold potential indicated by surface sampling?
- How soon will the Petrovo exploration license be granted, and what impact will it have on exploration timelines?
- What new acquisitions might Yugo Metals pursue to complement its current projects and enhance shareholder value?
