Labyrinth Resources shuffles board, launches $2.7 million capital raise for fresh exploration work

Labyrinth Resources (ASX:LRL) has named a new CEO and launched a $2.7 million capital raise as it works to progress exploration in Canada and Western Australia. 

The company reports its current CEO, Matt Nixon, will pass the mantle to former Peak Minerals (ASX:PUA) CEO Jennifer Neild, who has more than 18 years of experience in exploration across a ‘broad’ range of commodities in various jurisdictions.

Neild holds a Bachelor’s Degree in Geology from Laurentian University in Sudbury, Ontario, and a Master’s Degree in Geophysics from Curtin University in Perth.

Neild has previously held senior positions in exploration, resource geology, and production geology in Australia and Canada with Newmont Australia and Falconbridge, and she served as General Manager – Interpretation for expert geophysics group HiSeis.

Labyrinth says Neild’s geological and geophysics expertise in Australia and Canada, combined with her corporate and executive experience in the resources industry, ‘ideally’ places her to drive the next round of exploration at the Labyrinth and Comet Vale projects, which lie in Quebec and Western Australia, respectively.

Meanwhile, Nixon will transition to a Non-Executive Director role from 1 July 2023. Nixon served as Chief Operating Officer (COO) from February 2021 to November 2021, when he became CEO. Labyrinth says he led the company through a ‘transformational’ period of portfolio evaluation, administrative rectification, project acquisition, rebranding, and a strategic reset.

Labyrinth reports Nixon will provide Chief Executive services on a consultancy basis to ensure a smooth transition to Neild taking the reins and notes his retention as a Non-Executive Director ensures the company remains ‘well-placed’ to deliver its strategic objectives.

As part of the board changes, Mel Ashton resigned from his role as Non-Executive Director on 30 June 2023.

Labyrinth reports it has secured firm commitments to raise $1.05 million in a private placement through the issue of roughly 145 million new shares at $0.07 per share. 

The placement price represents a 25% discount to the company’s 5-day volume weighted average price (VWAP), and the new shares are expected to be settled on 17 July 2023. 

In conjunction with the placement, Labyrinth will undertake a pro-rata non-renounceable entitlement issue of one new share for every 4 existing shares to raise about $1,679 million. 

These shares are being offered at the same price as the placement to all of the company’s shareholders on its register on 13 July 2023. A maximum of around 239.872 million shares will be issued under the entitlement offer, and Labyrinth will retain the right to place any shortfall on identical terms once the offer is complete.

Funds raised through the placement and entitlement offer will be used to conduct exploration work at the Labyrinth and Comet Vale projects, generate strategic growth, and bolster the company’s asset portfolio. The funds will also be used to complete the final CAD$500,000 payment to G.E.T.T Gold under the acquisition of the Labyrinth Project and for general working capital purposes.

Commenting on the board changes, Labyrinth Resources Non-Executive Chairman Dean Hely says: “The appointment of Jennifer as chief executive, Matt’s appointment to the board, and the capital raising mean the company is very well positioned to take full advantage of the opportunities at its 2 projects.

We believe these assets have outstanding potential to create shareholder value through exploration; we have the team to unlock this value and the funds for them to pursue the next leg of this strategy.

“… the company is very well positioned to take full advantage of the opportunities at its 2 projects

On behalf of the board, I welcome Jennifer to the company and Matt to the board. I would also like to thank Mel for the valuable contribution he has made to Labyrinth and wish him all the best for the future.”

Labyrinth Resources is an ASX-listed gold explorer focused on its Labyrinth Gold Project in Quebec, Canada, and the Comet Vale Project near Kalgoorlie in Western Australia. The company had $915,000 total cash and investments at hand on 31 March 2023, according to its last quarterly report published on 28 April 2023.

Write to Harry Mulholland at Mining.com.au

Images: Labyrinth Resources Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.