Black Canyon Limited (ASX: BCA) (Black Canyon or the Company) has secured firm commitments for a $10 million placement to accelerate exploration and development at its 100%-owned Wandanya Project in the Oakover Basin, Western Australia. The funds will be directed towards drilling, metallurgical testwork, and feasibility studies across the high-grade manganese and iron discovery, underscoring the Project’s potential to become a significant critical minerals asset within Australia’s growing supply chain.
With strong backing from institutional investors and family offices, the capital raising positions Black Canyon to build momentum across its large manganese portfolio while progressing Wandanya towards development.
Outstanding Drilling Results
The Wandanya discovery, first announced in August 2025, has already delivered encouraging high-grade intercepts across multiple phases of drilling. Notable highlights included:
- Thick intervals of hydrothermal stratabound manganese and iron mineralisation across Phase 1 and Phase 2 programs.
- Continued strike continuity confirmed in Phase 3, with assays pending from the most recent campaign.
- Early indications of high-grade manganese exceeding 10% Mn, supported by significant iron credits.
Mineralisation begins at shallow depths, supporting potential for cost-effective open-pit mining. The third phase of RC drilling results, expected between mid-October and November, is anticipated to further expand the mineralised footprint.
Figure 1: Wandanya drill phases highlighting significant manganese and iron results
New Discovery Expands Potential
The Wandanya Project represents a new exploration model on the eastern margin of the Oakover Basin. Its combination of hydrothermal manganese and iron mineralisation highlights both scale and grade potential well beyond historical expectations.
Black Canyon has consolidated a commanding landholding of 2,300 km² across the underexplored Balfour Manganese Field (BMF) and Oakover Basin, giving it one of the largest exploration footprints in the region. With a Global Mineral Resource Estimate (MRE) of 314 Mt @ 10.4% Mn already established across its broader BMF portfolio, the Company is well-positioned to deliver further resource growth at Wandanya.
High-Value Critical Mineral Distribution
Manganese remains essential and non-substitutable in steelmaking alloys and is also a critical mineral for lithium-ion battery cathodes. Wandanya offers:
- Hydrothermal manganese grades above 10% Mn.
- Significant iron mineralisation complementing manganese output.
- Potential to supply into both the steel sector and emerging battery materials markets.
This distribution enhances Black Canyon’s strategic positioning as a dual commodity supplier.
Company Commentary
Black Canyon Managing Director Brendan Cummins said:
“We are delighted with the overwhelming support shown for the Company with this Placement, which was strongly backed by our major institutional shareholders including Nero Resource Fund, Lowell Resources and Perennial Natural Resources. We welcome new institutional investors, family offices, and thank existing shareholders for their continued support.”
Figure 2 : Brenda cummins Managing Director Black Canyon
He added:
“The strength of Placement demand underscores the increased confidence from the investment community in the quality of our Wandanya manganese and iron assets, and the potential across our broader manganese portfolio. With $12 million in the bank, we are well positioned to accelerate drilling, metallurgical testwork and development studies as we advance exploration and progress Wandanya towards development.”
Strategic Significance of Manganese and Iron
Wandanya’s discovery highlights the importance of securing domestic supplies of manganese and iron. Manganese is critical in both alloy production and clean energy technologies, while iron remains a cornerstone of global infrastructure and industrial growth.
The Project’s location in Western Australia — a Tier-1 mining jurisdiction with world-class logistics, skilled labour, and ESG frameworks — further strengthens its development pathway.
Market Outlook
Manganese: Global demand for manganese is supported by its essential role in steelmaking, where it improves strength, durability, and weldability. Additionally, manganese is increasingly recognized as a key component in next-generation lithium-ion battery cathodes. This dual demand stream underpins strong long-term fundamentals.
Iron Ore: Despite cyclical fluctuations, iron remains the world’s most traded bulk commodity, with continued demand driven by infrastructure development in Asia and beyond. Projects like Wandanya, which combine high-grade manganese and iron, are strategically positioned to benefit from cross-sector growth.
Position Among Global Peers
Black Canyon’s Wandanya Project stands out as a rare high-grade manganese and iron discovery within Australia, complementing its existing BMF resources. Compared to global peers, Wandanya has:
- Similar potential to supply steel alloys as South African and Gabonese producers.
- Added advantage of operating in a stable jurisdiction with robust ESG credentials.
- Government and investor recognition as part of Australia’s push to strengthen domestic supply chains for critical minerals.
Government and Community Support
Black Canyon is advancing heritage surveys to ensure responsible exploration and long-term project development. Ongoing cooperation with local communities and compliance with state regulatory frameworks underscores the Company’s ESG focus.
This approach, combined with strong institutional investment support, reflects confidence in both the economic and social sustainability of the Wandanya Project.
Investor’s Outlook: Share Performance
Black Canyon’s shares have responded positively to its exploration success and strong institutional support. Following the $10 million placement:
- Pro-forma cash position: $12 million.
- Placement issue price: $0.42 per share, a 5.8% discount to the 10-day VWAP prior to the September 3 trading halt.
- Pro-forma shares on issue: 157 million.
The Company’s strengthened balance sheet and continued exploration milestones are expected to drive investor interest in the months ahead.
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Conclusion
The $10 million placement marks a pivotal moment for Black Canyon Limited, ensuring the Company is fully funded to accelerate exploration and development at Wandanya. With high-grade manganese and iron mineralisation, extensive landholding, and strong institutional backing, Black Canyon is positioned to advance one of Australia’s most significant emerging critical minerals projects.
