Great Boulder to raise $4.5 million for Side Well resource expansion

Great Boulder Resources (ASX:GBR) has tapped investors for $4.5 million to advance resource expansion work at its flagship Side Well Gold Project in Western Australia. 

The $29.44 million capitalisation company says the funds will be raised via a placement of 90 million fully paid ordinary shares to investors and key shareholders at $0.05 per share. 

This price represents a 13.8% discount to Great Boulder’s last closing price of $0.058 and a 16.2% discount to its 5-day volume weighted average price (VWAP) of $0.0597. 

Discovery Capital Partners and Cumulus Wealth are acting as joint lead managers to the placement. 

Great Boulder Resources Managing Director Andrew Paterson says a successful capital raise in difficult market conditions represents a ‘strong’ validation of its Side Well Project and the company’s strategy. 

“This placement positions the company with a strong balance sheet to accelerate exploration on high-priority regional discovery targets along the Ironbark Corridor, as well as advanced targets such as Mulga Bill North.”

Funds from the placement, in conjunction with existing cash, will be applied to resource growth exploration and new discovery drilling at Side Well, which hosts a JORC 2012 resource of 668,000oz @ 2.8 grams per tonne (g/t) gold, including a ‘high-grade’ core of 496,000oz @ 5.3g/t. 

The work will include continued extensional reverse circulation (RC) and diamond drilling to expand the Mulga Bill and Ironbark resource base, priority follow-up drilling at Mulga Bill North for inclusion in future Mineral Resource Estimate (MRE) updates, and the testing of the plus-14km Ironbark corridor and other ‘high-priority’ regional targets. 

Great Boulder notes the funds will also be used for low-cost exploration at its wholly owned Wellington Base Metal Project along-strike from Rumble Resources’ (ASX:RTR) recent zinc-lead discovery at the Earaheedy Project, as well as for corporate costs and general working capital. 

Funds from the placement will be issued in 2 tranche payments comprising 49 million new shares for $2.45 million and 41 million new shares for $2.05 million, respectively. 

As part of the placement, institutional investor Collins St Asset Management has committed to subscribing for the full 41 million shares under tranche 2 of the placement, providing the full $2.05 million.

The company reports new shares will rank equally with existing fully paid ordinary shares, and it will issue one free attaching unlisted option for every 2 placement shares issued pursuant to the placement. 

These options will be exercisable at $0.075 each with an expiry date of 31 January 2026, subject to an extraordinary general meeting (EGM) in mid/late January 2024.

New shares under tranche one of the placement are expected to settle on 29 November this year, while the settlement of tranche 2 is scheduled for on or around 11 December. 

Great Boulder Resources is a mineral explorer with a portfolio of ‘highly prospective’ gold and base metals assets in Western Australia ranging from greenfields to advanced exploration. 

As of 30 September, Great Boulder Resources had $2.488 million cash and cash equivalents at hand, according to its latest quarterly report.

Write to Adam Drought at

Images: Great Boulder Resources
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.