E79 Gold Mines Limited (ASX: E79), headquartered in Nedlands, Western Australia, is an exploration company dedicated to discovering and developing gold resources in underexplored regions. Founded in 2007, the company holds 1,838 km² of tenements across Western Australia and the Northern Territory, focusing on highly prospective gold belts. Its flagship Laverton South Gold Project, spanning 272 km², is situated within the Laverton Tectonic Zone (LTZ), an area with over 30 million ounces of historical gold production. Additionally, E79 Gold holds an 868 km² copper-gold project in the McArthur Basin, Northern Territory, targeting large-scale mineralisation. Currently, E79 Gold shares are trading at $0.041 per share.
Strong Investor Support and Placement Details
The $1.8 million placement was oversubscribed, reflecting strong investor confidence in E79 Gold’s exploration potential. The placement was conducted at $0.032 per share, a 22% discount to the last traded price of $0.041 and a 20.4% discount to the 5-day volume-weighted average price (VWAP). This pricing strategy was designed to attract investor participation while maintaining a competitive capital-raising structure.
To enhance the offering, investors participating in the placement received one free unlisted option for every two shares purchased, with an exercise price of $0.07, expiring on 30 June 2026. This structure provides shareholders with additional exposure to potential share price appreciation as E79 Gold advances its exploration programs.
The placement will be completed in two tranches. Tranche 1, raising $817,000, will be settled on 24 February 2025, with 25.54 million shares issued under the company’s existing placement capacity. Tranche 2, which will raise $983,000 through the issuance of 30.71 million shares, is subject to shareholder approval at a General Meeting in April 2025. Notably, company directors have committed to subscribing for $61,440 worth of shares, further aligning management with investor interests.
Advancing Gold Exploration at Laverton South
Proceeds from the placement will be used to fund air core drilling at the Laverton South Gold Project, where the company is actively exploring for high-grade gold mineralisation. This project is in proximity to several significant gold discoveries, including Kalgoorlie Gold Mining’s (ASX: KAL) Lighthorse gold discovery, which has reported strong assay results.
Recent drilling at Lighthorse delivered intercepts such as 8m @ 2.29 g/t Au from 60m, located just 40m from E79 Gold’s tenement boundary, and 17m @ 4.81 g/t Au from 48m, approximately 550m away. These results indicate the potential for a broader mineralised system extending into E79 Gold’s ground, making this upcoming drilling program highly anticipated.
E79 Gold’s exploration team has planned a detailed drilling campaign to test for continuations of mineralisation within its Laverton South tenements. Air core drilling will focus on key structural targets identified through geophysical surveys, aiming to define new gold zones and advance the project toward resource delineation.
A Well-Timed Investment in Gold Exploration
The gold exploration sector has seen increased investor interest, with rising gold prices and strong demand for new discoveries. Western Australia continues to be a top-tier jurisdiction for gold exploration, attracting capital and expertise from both junior explorers and major mining companies.
E79 Gold’s Laverton South project is situated in one of the most productive gold belts in Australia, an area known for hosting major gold deposits. The recent discovery success by neighbouring companies has increased speculation about the potential of this region, positioning E79 Gold as a strong contender for new discoveries.
The company maintains a strong cash position of $1.46 million (as of 31 December 2024), ensuring it is well-funded to execute its exploration strategy. With the additional $1.8 million secured through the placement, E79 Gold is now fully equipped to undertake systematic exploration at Laverton South and further advance its gold discovery efforts.
The timing of this capital raise aligns with renewed optimism in the gold sector, where increasing geopolitical uncertainty and inflation concerns have driven investors towards assets like gold. Exploration companies with highly prospective tenements and well-funded drilling programs, such as E79 Gold, are well-positioned to benefit from this trend.
