Accelerate Resources Secures $1.35M to Drive Gold Exploration Strategy

Accelerate Resources Limited (ASX: AX8) is pleased to announce the successful completion of a $1.35 million capital raising initiative through a placement to professional and sophisticated investors. The proceeds will support the company’s gold exploration strategy, with a primary focus on the recently acquired Kanowna East Gold Project in Western Australia.

The Kanowna East Gold Project is strategically located within the prolific Kalgoorlie gold region, only 25km from the renowned +60Moz Superpit and 9km east of the +6Moz Kanowna Belle gold mine. Accelerate Resources Limited (ASX: AX8) holds a 70% interest in this highly prospective project, which offers significant potential for new gold discoveries.

Advancing Exploration Efforts

The funds raised, combined with existing cash reserves, will enable Accelerate Resources Limited (ASX: AX8) to accelerate exploration activities at Kanowna East and its Comet Gold Project. The company also plans to further strengthen its financial position by divesting non-core assets in the coming months.

Chief Executive Officer Luke Meter expressed enthusiasm for the funding milestone, "We are delighted with the strong support for this placement. The funds raised will ensure we are well-positioned to fast-track our exploration efforts at Kanowna East, a strategic entry into the Kalgoorlie region. We believe this project holds immense potential for significant gold discoveries."

Placement Details

The placement involved issuing 135,000,000 new fully paid ordinary shares at an issue price of A$0.01 per share, representing a 23.1% discount to the company’s last traded price and a 0.9% discount to the 15-day VWAP. Of this, 125,000,000 shares (A$1.25 million) will be issued under the company’s placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A.

Additionally, the company’s directors and CEO intend to participate in the placement, contributing a total of approximately A$100,000, subject to shareholder approval at a general meeting anticipated in April 2025. Euroz Hartleys Limited acted as Sole Lead Manager and Bookrunner for the placement.

Indicative Timetable

• Return to Trading on ASX: January 31, 2025
• DVP Settlement of Placement: February 7, 2025
• Allotment and Normal Trading of New Shares: February 10, 2025
• Director Participation Approvals: Indicatively April 2025

Board Changes

The company also announced the resignation of Ms. Zhan from the board. Ms. Zhan will assist with the transition and the divestment of non-core assets. Accelerate Resources Limited (ASX: AX8) Chairman, Richard Hill, commented, "We thank Ms. Zhan for her dedication and valuable contributions to the company. We wish her all the best in her future endeavors." Accelerate Resources Limited (ASX: AX8) remains committed to delivering value to shareholders through strategic exploration and development of its gold assets.