Arika Resources (ASX:ARI) has secured firm commitments for a $6.55 million placement to accelerate drilling and resource definition across its Western Australian gold portfolio.
The company will issue approximately 344.7 million shares at $0.019 each under its existing placement capacity. The price represents a 20.8% discount to Arika’s closing price on 22 July 2026.
Lion Selection Group (ASX:LSX) is the cornerstone investor and is expected to hold about 6.7% of Arika following completion.
Eligible Arika directors also intend to subscribe for a further $700,000 worth of shares on the same terms, subject to shareholder approval at a general meeting expected in early September. Their participation would lift the total raised to approximately $7.25 million before costs.
The proceeds will support exploration, resource definition, and extension drilling at Arika’s wholly owned Yundamindra and Kookynie Gold Projects in the Eastern Goldfields. Funding will also be allocated to work towards maiden mineral resource estimates (MREs) and general working capital.
Arika recently began a drilling campaign of more than 20,000m across the two projects. Initial work is underway at Kookynie, marking the first drilling conducted at the project in more than five years.
Managing Director Justin Barton says the funding will support exploration across both projects.
“With a significantly strengthened balance sheet, we are now well funded to execute an aggressive exploration strategy focused on expanding known mineralisation, advancing towards maiden MREs and testing numerous high-priority targets across both projects,” Barton says.
Yundamindra lies about 65km southeast of Leonora on the western margin of the Laverton Greenstone Belt. Kookynie is about 150km north of Kalgoorlie-Boulder and covers the eastern extensions of geological structures hosting Genesis Minerals’ (ASX:GMD) Ulysses operations.
Settlement is scheduled for 31 July, with the shares expected to be issued on 3 August. Argonaut Securities acted as lead manager and bookrunner.
Write to France Pinzon at Mining.com.au
Images: Arika Resources
