Northstone Resources (ASX: NRL) has successfully raised A$2.37 million through an oversubscribed placement, aimed at advancing its gold and copper projects in Serbia. The company plans to issue 263,444,444 new shares at a price of A$0.009 each, which represents a 10% discount compared to the last traded price of A$0.010 on 30 October. The share issue is expected to be finalised on 11 November.
The fundraising effort saw significant participation from the company’s directors and management, who collectively committed A$240,000. Notably, A$135,000 of this amount will require shareholder approval, with contributions from directors Glenn Whiddon, Ian Shackleton, and James Pearse. Additionally, participants in the placement will receive one free attaching option for every two shares subscribed, amounting to approximately 131.7 million options in the NRLO class, which can be exercised at A$0.02, expiring on 20 January 2030. GBA Capital acted as the lead manager for the placement, earning a 6% fee along with 26.3 million broker options on similar terms.
The proceeds from this capital raise are earmarked for several key initiatives, including funding the maiden JORC Mineral Resource Estimate at the flagship Tlamino Gold–Silver Project, which is targeted for completion in the December quarter of 2026. Following this, the company plans to conduct a scoping study and further drilling activities, both step-out and greenfield, to enhance its resource base. Additionally, funds will be allocated for field exploration at the Timok East Copper Project, covering the costs associated with the capital raise and supporting ongoing working capital needs.
Chief Executive Max Piirto expressed optimism about the future, highlighting record drilling results outside the 2021 estimate and infill results that confirm continuity in the resource. He anticipates a busy period ahead, with a series of important updates expected, including final infill assay results, initial greenfield results, the resource estimate, and an updated scoping study.
This capital raise marks a significant step for Northstone Resources as it seeks to bolster its position in the Serbian mining sector, particularly within the promising Timok belt, known for its rich mineral deposits. Investors and stakeholders are keenly awaiting the upcoming developments as the company embarks on this ambitious growth trajectory.
