Dreadnought Resources Ramps Up WA Gold Hunt with $10M Raise as Production Nears

Key Highlights:

• $10M capital raise to accelerate development at Star of Mangaroon and Illaara projects
• High-grade open-pit gold potential with early-stage production and regional drilling underway
• DRE shares down 6.67% today, but YTD return remains positive at +16.67%

Funding Secured for Drilling Blitz as Dreadnought Eyes Near-Term Gold Production

Dreadnought Resources Ltd (ASX: DRE) is pushing forward with its “find gold, fast” mandate, securing up to $10 million in new capital to drive exploration and early development across its two flagship gold projects in Western Australia: Mangaroon and Illaara.

The raise, comprising an $8.5 million two-tranche placement and a $1.5 million Share Purchase Plan (SPP), is being offered at $0.012 per share—a 20% discount to the last traded price of $0.015. Despite the discount, shares dipped further to $0.014 in today’s trade, falling 6.67% on volume exceeding 15.8 million. The company now holds a market capitalisation of approximately $58.2 million with over 4.16 billion shares on issue.

Dreadnought’s Managing Director Dean Tuck said the funds would be used to expand existing resources, test new high-priority gold targets, and support scoping and processing studies. “We are now well capitalised to take Star of Mangaroon to the next level and aggressively test our regional pipeline,” Tuck stated.

The placement has strong backing from cornerstone investor Black Cat Syndicate (ASX: BC8), which is contributing $1 million and retains an option to process ore from Mangaroon at its Paulsens Gold Operation nearby.

Star of Mangaroon: Near-Term Production with Blue-Sky Upside

Dreadnought’s flagship project, Star of Mangaroon, continues to impress. A maiden JORC resource of 23,300 ounces grading 12.8g/t gold—84% of it classified as Indicated—has been defined within just 100 metres of surface. A recent scoping study outlined robust economics: ~$50 million in free cashflow over 10–12 months of production, a low AISC of ~$1,800/oz, and a modest capex of just $10 million.

The strategy? Fast-track approvals and outsource mining, haulage, and processing to minimise cost and risk. Additional gravity recovery test work is underway to assess the feasibility of onsite processing.

Beyond Star of Mangaroon, the company has identified numerous drill-ready prospects including Popeye, Pritchard’s, and Lead Gold Mine—all of which have returned high-grade hits in limited historical drilling. Some of the standout intercepts include:

• 7m @ 23.0g/t Au from 53m (SOMRC005)
• 4m @ 27.4g/t Au from 80m (SOMRC030)
• 3m @ 22.8g/t Au from 13m at Popeye

Meanwhile, the Illaara Project in the Yilgarn region provides additional exploration upside. With a current resource of 14.9koz at 6.8g/t gold at Metzke’s Find and multiple untested anomalies, it represents another front in the company’s gold-focused growth plan.

Outlook: High-Grade Potential with Catalysts Ahead

Despite the recent pullback in DRE’s share price, the company has delivered a +16.67% return year-to-date. While its one-year return sits at -17.65%, investors appear to be rotating back into quality junior explorers with near-term production potential and exposure to rising gold prices.

Dreadnought’s clear plan for 2025 includes:

• Advancing the Star of Mangaroon open pit toward production
• Aggressive drilling across Mangaroon and Illaara to grow resource base
• Continued consolidation and targeting of new prospects

The SPP opens on April 4, with the general meeting for Tranche 2 placement approval scheduled for May 6.