The money is in, the drills are already turning and the market has taken notice.
Hamelin Gold (ASX:HMG) shares have jumped around 30% on strong volume today after securing firm commitments for an $8M placement to accelerate exploration across its WA gold portfolio.
Importantly, two of its biggest shareholders are putting more money in.
Heavyweights stay on board
Gold Fields has committed around $1.5 million to the raise, while Vault Minerals is contributing ~$600,000.
Following completion, their respective holdings are expected to sit at around 17.7% and 10.9%.
That gives Hamelin continued backing from two established names in Australian gold as it ramps up exploration.
The placement is priced at $0.16 per share, with directors also intending to subscribe for another $321,000 subject to shareholder approval.
Figure 1: Hamelin’s WA Project location map.
Day Dawn leads the charge
The timing is useful.
Hamelin Gold already has drilling underway at Day Dawn, where the company recently kicked off over 3,000m of Phase 2 RC drilling targeting extensions to the high-grade Aurora Lode and potential parallel structures.
The fresh capital will also fund work across Venus near Cue, West Tanami and Hamelin’s broader Cue regional portfolio.
Managing Director Peter Bewick said the funding puts Hamelin in a strong position to accelerate several exploration programs at once.
What’s next
Drilling continues at Day Dawn, while programs at Venus and West Tanami are being prepared.
For Hamelin Gold, the raise does more than top up the bank account.
It gives the company the money to test whether the high-grade Day Dawn story can become something much bigger.
