Pacgold (ASX:PGO) has received firm commitments to raise a $13 million placement to fund a continued production ramp-up and expansion at the White Dam Gold Project in South Australia.
The company will issue 86.67 million shares at $0.15 each across two tranches. The first 83.23 million shares will be issued in tranche one, and the remaining 3.43 million shares will be issued in tranche two, following shareholder approval at the annual general meeting, which is expected to be held in late November 2026.
Pacgold will also seek shareholder approval for directors’ subscription in this placement for a total of $515,000 in shares at the general meeting.
The placement is expected to settle on 7 August, followed by tranche one shares being allotted and commencing trading on 11 August. Tranche two shares will begin allotment and trading following approval at the general meeting.
Euroz Hartleys and Taylor Collison acted as joint lead managers to the placement and will be issued 10 million unquoted options exercisable at $0.225 per share, expiring three years from issuance.
Managing Director Matthew Boyes says Pacgold is very pleased with the “strong support” received in this placement, which will drive the company’s next phase of growth.
“This capital injection is a direct endorsement of the recent high-grade discovery at White Dam North which now clearly demonstrates the untouched gold and copper sulphide potential in and around the mine,” Boyes says.
“This, combined with our White Dam restart strategy for production from the existing shallow oxide deposits, gives us a very solid base to build a significant company.
“We will now aggressively fast-track our near-mine exploration programs and push forward with the plans for production ramp-up at the White Dam Gold Project to drive shareholder value.”
The company will continue its production ramp-up and expansion at White Dam, as well as advancing near-mine exploration activities, including the recent White Dam North discovery and ongoing oxide resource drilling.
The planned White Dam heap leach expansion includes mine design, optimisation studies, and heap leach pad expansion design.
Exploration near the mine follows the ‘high-grade’ gold and copper sulphide mineralisation intersected at White Dam North, as reported by Mining.com.au.
At White Dam North, hole WNRC006 returned 20m @ 2.5 grams per tonne gold (Au) and 0.5% copper (Cu) from 58m, including 6m @ 7.5g/t Au and 1.2% Cu from 68m. Hole WNRC010 returned 10m @ 3.4g/t Au and 0.7% Cu from 54m, including 5m @ 5g/t Au and 1% Cu from 56m.
The company says the project’s prospectivity has been “significantly enhanced” by the recent discovery of the sulphide gold-copper mineralisation at White Dam North.
Proposed exploration includes up to 35,000m of reverse circulation drilling and 5,000m of diamond drilling, focused on testing both the oxide and potential deeper sulphide zones on the key prospects.
The White Dam Project hosts a 102,000-ounce gold mineral resource estimate. The current program aims to upgrade the predominantly inferred resource to indicated.
Pacgold will conduct an induced polarisation geophysical survey to assist follow-up targeting.
Drilling continues through July to infill and extend the 2020 resource estimate, with an updated Vertigo deposit model due in Q3 2026.
Pacgold is a mineral exploration company focused on projects in North Queensland and South Australia.
Write to Maddison Elliott at Mining.com.au
Images: Pacgold
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