What are the details of the GoldArc Resources (ASX:GA8) capital raising?

GoldArc Resources has secured firm commitments to raise A$7.2 million (before costs) through a placement of approximately 102.9 million new ordinary shares. The shares were priced at A$0.07 each, which is slightly below the market price of A$0.071 reported at the time of the announcement.

Why did GoldArc Resources (ASX:GA8) raise $7.2 million?

The primary purpose of the raise is to fund an aggressive drilling campaign targeting resource growth and new gold discoveries. Specifically, the capital will be used for Reverse Circulation (RC) drilling at the Leonora North prospects—including Mt Stirling, Yttria, and Chert—and the Cosmopolitan RC program.

Who participated in the GoldArc Resources (ASX:GA8) placement?

The placement saw strong support from a diverse group of institutional and high-net-worth investors across Australia, New Zealand, Hong Kong, and the UK. Notably, BML Ventures and its principals subscribed for A$1.5 million of the total.

How does the BML Ventures investment affect GoldArc’s balance sheet?

Of the A$1.5 million subscribed by BML Ventures, A$1 million will be used as a "set-off" against the principal amount GoldArc owes under an existing profit cash advance facility. This effectively reduces the company's debt obligations while increasing its equity base.

What does this capital raising mean for existing GoldArc (ASX:GA8) shareholders?

The issuance of 102.9 million new shares will result in equity dilution for existing shareholders, as there are now more shares sharing the total value of the company. However, the placement was conducted at A$0.07, very close to the recent trading price of A$0.071, suggesting minimal immediate "discount" impact.

What is the exploration strategy for the Leonora North Gold Project?

GoldArc owns 100% of the Leonora North Gold Project, which covers 12km of the Ursus Fault Line, but only 3km has been drill-tested to date. The management's strategy is to use the new capital to test the remaining 9km of the strike.

Image for illustrative purposes only. Not a real photo.

GoldArc secures $7.2M to accelerate Leonora drilling

Written by Isaac FrancisPublished May 15, 2026, 6:44 AMLast Updated Jul 6, 2026, 10:11 AM

GoldArc Resources (ASX:GA8) secured firm commitments to raise $7.2 million (before costs) to fast-track its exploration and drilling initiatives at the Leonora North Gold Discovery.

The capital raising was achieved through a placement of approximately 102.9 million fully paid ordinary shares priced at $0.07 each.

The influx of capital was strongly supported by a diverse group of new and existing institutional investors, alongside high-net-worth individuals across Australia, New Zealand, Hong Kong, and the United Kingdom.

A portion of the placement includes a $1.5 million subscription from BML Ventures and its principals.

Of this, $1 million will be set off against the principal amount advanced under an existing profit cash advance facility.

Furthermore, GoldArc’s directors have demonstrated their confidence in the company’s trajectory by committing $135,000 to the placement, a move subject to shareholder approval.

The newly raised funds are earmarked for an aggressive drilling campaign targeting resource growth and new discoveries.

Key activities include a Leonora North RC campaign—specifically focusing on the Mt Stirling, Yttria, and Chert prospects—as well as a Cosmopolitan RC programme and regional soil sampling.

Managing Director Paul Stephen emphasised that the company holds 100% of the Leonora North Gold Project, which spans 12km of the Ursus Fault Line.

At the time of reporting, GoldArc Resources’ share price was $0.071.

GoldArc secures $7.2M to accelerate Leonora drilling

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