Reach Resources raises $6.1M Murchison Gold Project boost
Reach Resources (ASX:RR1) has secured a financial boost, locking in $6.1 million in total cash funding to accelerate its flagship Murchison South Gold Project.
The capital influx follows the complete allocation of the remaining shortfall from the company’s recent non-renounceable rights issue, a strategic placement to Andel Resources, and the receipt of a key option fee.
The funding milestone traces back to late March, when Reach launched a pro-rata entitlement issue offering 2 fully paid ordinary shares for every 5 held, priced at an ultra-low $0.009 per share.
While initial take-up yielded roughly $825,855 in April, the company has successfully cleared 100% of the remaining shortfall.
The final tranche generated an additional $2.32 million, triggering the immediate issuance of over 258 million shortfall shares.
The capital raise welcomes Andel Resources as a substantial stakeholder on the register.
Under a placement agreement first flagged in May, Andel has subscribed for 100 million ordinary shares—representing roughly 9.4% of Reach's issued capital at the time—alongside an extra 25.5 million shortfall shares.
Moving forward, Andel will control a commanding 9.48% stake in the explorer.
Beyond equity, Andel has delivered a $2 million non-refundable option fee specifically earmarked to fast-track approvals and development at the Murchison South ‘Blue Heaven’ project.
Reach CEO Jeremy Bower expressed strong confidence in the company's financial runway, stating the $6 million war chest leaves them well-funded to drive production endeavours forward.
