Cash-Strapped Reedy Lagoon Defers Pay While Advancing Burracoppin Projects
Reedy Lagoon Corporation is gearing up for initial drilling at its Burracoppin Gold Project while actively seeking a joint venture partner for its Burracoppin Iron Project, maintaining a cautious cash position of just under $80,000.
- Preparations underway for first-pass gold drilling at Burracoppin
- Fine fraction soil sampling and heritage surveys in progress
- No field work on Burracoppin Iron Project this quarter; JV partner sought
- Cash balance at $79,861 with exploration expenditure of $14,839
- Directors defer remuneration; $50,000 subordinated loan received
Exploration Momentum Builds at Burracoppin Gold
Reedy Lagoon Corporation Limited (ASX, RLC) is advancing its exploration efforts at the Burracoppin Gold Project in Western Australia's central Wheatbelt. The company is preparing for its first round of reverse circulation drilling targeting structural gold prospects along the underexplored 30-kilometre Yandina Shear Zone. This initiative follows extensive fine fraction soil sampling and airborne geophysical surveys that have identified promising bedrock targets at the Lady Janet, Windmills, Shear Luck, and Zebra prospects.
Preparations include securing landowner agreements, conducting heritage surveys, and engaging drill contractors, signaling a methodical approach to unlocking the project's potential. Additional wide-spaced soil sampling is also planned to cover unsampled areas, reflecting a commitment to thorough groundwork before drilling commences.
Iron Project Seeks Strategic Partner Amidst Technological Promise
Meanwhile, the Burracoppin Iron Project remains on hold for field activities this quarter as Reedy Lagoon seeks a joint venture partner to advance resource definition drilling. The magnetite deposit's location near key infrastructure, including the Great Eastern Highway and Trans-Australian Railway, positions it well for future development.
Notably, metallurgical testing indicates the magnetite is well-suited for smelting into high-purity pig iron using HIsmelt technology, which offers potential environmental benefits such as net-zero greenhouse gas emissions by replacing coal with biochar. While no formal agreement with HIsmelt's technology owners is in place, the project's alignment with green steel production trends could attract strategic partners, particularly steel producers interested in sustainable pig iron supply.
Financial Position and Corporate Governance
Reedy Lagoon ended the quarter with a modest cash balance of $79,861, having spent $14,839 on exploration activities. The company received a $50,000 interest-free subordinated loan from a related party, repayable only if financially viable, underscoring tight liquidity management. Directors have agreed to defer their remuneration until the company regains solvency, reflecting prudent stewardship during this exploration phase.
Looking ahead, the company’s ability to secure funding or farm-out arrangements will be critical to advancing both projects. The strong gold price environment may enhance the appeal of the Burracoppin Gold Project to potential joint venture partners, while the innovative iron project awaits the right collaborator to unlock its value.
Bottom Line?
Reedy Lagoon’s upcoming drilling and JV pursuits will be pivotal in defining its next growth phase amid tight finances.
Questions in the middle?
- When will drilling commence and what initial results can be expected?
- Who might emerge as a joint venture partner for the Burracoppin Iron Project?
- How will the company fund exploration beyond the current cash runway?
