Pacgold Limited (ASX: PGO) (“Pacgold” or “the Company”) has successfully raised $5.6 million to fund an extensive exploration program at its flagship Alice River Gold Project in North Queensland. The capital raise attracted strong participation from both institutional and sophisticated investors, highlighting robust confidence in the Company’s strategy and project potential.
The funding will be deployed through a two-tranche placement comprising approximately 93.3 million new fully paid ordinary shares at an issue price of $0.06 per share. Participants in the placement will also receive one free attaching option for every two shares acquired, with each option exercisable at $0.10 and set to expire on 31 December 2027, subject to shareholder approval.
“The support from existing and new shareholders for the Placement is a clear demonstration of support for the quality of the Alice River Project,” said Matthew Boyes, Managing Director of Pacgold.
Figure 1: Map of the Alice River Gold Project showing granted tenements, mining leases, key exploration targets, historical gold prospects, and priority structural zones across the project area in North Queensland. [Pacgold]
Funding Exploration at a Promising Gold Project
The proceeds from the placement will be used to fast-track exploration across Pacgold’s 100% owned Alice River Gold Project, situated 300km northwest of Cairns. The comprehensive program includes:
- 12,000 metres of reverse circulation drilling
- 3,000 metres of diamond drilling
- 5,000 metres of aircore drilling
- Regional geophysical and geochemical programs
- General working capital requirements
With these initiatives in motion, the Company aims to further delineate its resource base and explore new target zones within its tenement package.
“With this year’s exploration programmes now well underway and with a quality team in place, we can look forward to an exciting year for Pacgold as we expand our exploration footprint extensively along the Alice River project,” Boyes added.
Placement Details and Shareholder Participation
The placement is divided into two tranches. Tranche 1 will see 21,474,690 shares issued under existing placement capacities, raising approximately $1.3 million. These shares are expected to be settled by 6 June 2025, with trading on the ASX to commence from 10 June 2025.
Tranche 2, consisting of 71,858,644 shares, will raise approximately $4.3 million and is subject to shareholder approval at a General Meeting scheduled for early July 2025. The Company directors have expressed their intention to participate in this tranche, subscribing to $200,000 worth of shares.
Figure 2: Key dates for Pacgold’s $5.6M placement, detailing the timeline for share settlements, trading commencement, and shareholder approvals through July 2025. [Pacgold]
Additional Incentives and Broker Engagement
Participants in the placement will also receive free attaching options, and the Company has proposed to issue a further 15 million options to the Joint Lead Managers—Euroz Hartleys Limited, Bell Potter Securities Limited, and SCP Resource Finance LP. These options will be exercisable at $0.105 per share and will expire three years from the date of issue.
The lead managers will also receive a cash fee equivalent to 6% of the total placement proceeds, reflecting their role in the successful execution of the funding round.
Alice River Gold Project: A Strategic Asset
Pacgold’s Alice River Gold Project is located within the gold-rich Northeast Queensland Mineral Province, home to major deposits including Pajingo, Mt Leyshon, Kidston, and Ravenswood. The project spans 377 square kilometres and includes eight mining leases and five exploration permits.
The project area contains a historic high-grade goldfield and an open pit mine. Since Pacgold’s establishment in 2021, the Company has undertaken over 27,000 metres of drilling, validating the potential for district-scale mineralisation. The planned 2025 exploration activities are designed to build on this progress and define a more comprehensive geological picture.
Project Timeline and Shareholder Engagement
Key milestones for the placement and exploration program include:
- Settlement of Tranche 1 shares by 6 June 2025
- Trading commencement of Tranche 1 shares on 10 June 2025
- Shareholder meeting in early July 2025 to approve Tranche 2 and option issues
- Settlement and trading of Tranche 2 shares expected shortly thereafter
These dates remain indicative and may be adjusted subject to market conditions and regulatory requirements.
Market Confidence and Gold Price Outlook
The overwhelming response to the capital raise demonstrates growing market confidence in Pacgold’s future. By securing funds to execute a comprehensive drilling and exploration campaign, the Company is positioning itself for significant discoveries and potential value creation for shareholders.
The timing of Pacgold’s $5.6 million capital raise aligns strategically with a robust gold market, adding further significance to the announcement. As of May 29, 2025, gold is trading at USD 3,304.53 per ounce, reflecting a daily increase of $6.31 (+0.19%). Over the past year, gold has surged by 41.59%, and an impressive 692.15% over the past 20 years, according to data from goldprice.org.
Figure 3: Gold price performance in different timeframes
This upward trend reinforces investor interest in gold exploration ventures, particularly those with strong geological foundations and aggressive development strategies—both characteristics embodied by Pacgold’s Alice River Gold Project.
The Company’s expanded drilling plans and exploration investment come at a time when gold’s strong performance is boosting sentiment across the sector. Rising gold prices often lead to increased valuations for exploration companies, especially those nearing resource definition or discovery milestones.
With gold maintaining momentum and investor appetite for gold-backed assets growing, Pacgold is well-positioned to capitalise on both the market conditions and its own exploration progress in the coming months.
Investor’s Outlook
Here is a list of recent stock price movements of Pacgold Limited (ASX: PGO).
● Last Price: AUD 0.064
● Market Capitalisation: AUD 9.33 million
● 52 Week Range: $0.053 – $0.175
● Shares on Issue: 131,454,338
With a well-funded exploration plan and a highly prospective asset in the Alice River Gold Project, Pacgold offers investors a compelling opportunity in Australia’s junior gold exploration sector. The market will be watching closely as drilling results emerge and project momentum builds through 2025.
