NSM Raises $500,000 at 3 Cents per Share to Fund Key Projects

Strategic Capital Raise

North Stawell Minerals Ltd (ASX, NSM) has successfully completed a $500,000 placement, issuing over 16.6 million new shares at 3 cents each to professional and sophisticated investors. This capital injection comes at a slight discount to recent trading prices, a common practice aimed at attracting committed investors while balancing shareholder value.

The funds raised will underpin the company’s exploration ambitions across several key projects, notably Darlington, Wildwood, and Caledonian, all situated within the highly prospective Stawell Mineralised Corridor in Victoria. This region has a rich history of gold production, with the nearby Stawell Gold Mine having yielded over five million ounces.

Exploration Focus and Potential

Darlington remains the centerpiece of NSM’s exploration strategy, where previous drilling has revealed promising gold mineralisation, including a standout intercept of 2.3 meters grading 29.2 grams per tonne gold. The company is deploying a suite of near-surface exploration techniques such as diamond drilling and surface geochemistry to expand understanding of the newly identified basalt formations that may host Stawell-type or Mariners-type gold deposits.

Looking ahead to 2026, North Stawell Minerals plans to intensify its efforts with aircore drilling and high-resolution geochemical surveys, guided by the data gathered from ongoing and past programs. These initiatives aim to unlock the potential of an 8-kilometer mineralised trend, which could significantly enhance the company’s resource base if successful.

Financial and Market Implications

The placement not only strengthens NSM’s balance sheet but also signals investor confidence in its long-term strategy. Amery Partners Pty Ltd acted as lead manager for the placement, earning a 6% fee and broker options exercisable at 8 cents, aligning their interests with the company’s future performance.

With the company now fully funded through late 2026, NSM is positioned to maintain momentum in its exploration programs without immediate capital concerns. However, the discount applied to the placement shares may exert short-term pressure on the share price, a trade-off often seen in such capital raises.

Looking Forward

North Stawell Minerals’ latest capital raise underscores its commitment to unlocking value in one of Australia’s most promising gold corridors. As drilling and geochemical results emerge, the market will be watching closely to see if these early signs of mineralisation translate into a significant new discovery.