Great Boulder Resources (ASX:GBR) raises $40M to fund Peak Hill Gold Project acquisition

Great Boulder Resources has received firm commitments to raise $40 million from institutional and sophisticated investors to fund its acquisition of the Peak Hill Gold Project in Western Australia from Aragon Resources, a wholly owned subsidiary of Westgold Resources.

The capital raising follows the company’s announcement on 4 May that it would acquire 100% of Westgold’s interest in Peak Hill, which is located near Westgold’s Bluebird, Fortnum and Tuckabianna mills and approximately 100km from Great Boulder’s Side Well Gold Project.

According to the company, the acquisition and placement will position Great Boulder with a pro forma net cash balance of $25 million to fund drilling across both projects, alongside engineering studies and activities.

Highlights

• Great Boulder received firm commitments to raise $40 million through a two tranche placement priced at $0.085 per share.
• The placement will result in the issue of approximately 470.6 million new shares.
• The offer price represents a 3.4% discount to the last traded price of $0.088 and a 13.6% discount to the 10 day VWAP of $0.098.
• Following completion of the acquisition and placement, the company said it expects a pro forma net cash balance of $25 million.
• Great Boulder plans up to 6 rigs across Peak Hill and Side Well for 60,000m of drilling over the next 6 to 12 months.
• The company aims to deliver an updated mineral resource estimate for Peak Hill within 6 months.

The Peak Hill transaction includes 7 granted mining leases, comprising 4 that are 100% owned and 3 that are 85% owned, as well as 1 granted exploration licence that is 85% owned.

The placement comprises approximately $12.4 million under Tranche 1 through the issue of approximately 145.5 million shares using the company’s existing placement capacity under ASX Listing Rule 7.1.

Tranche 2 will raise approximately $27.6 million through the issue of approximately 325.1 million shares, subject to shareholder approval at a general meeting expected in mid June 2026.

Certain directors have also indicated their intention to participate in the placement for $165,000, subject to shareholder approval, on the same terms as other investors.

Great Boulder Managing Director Andrew Paterson said the acquisition adds to the company’s existing portfolio.

“The acquisition of the Peak Hill Gold Project is hugely transformational for Great Boulder. Not only does it add a significant gold endowment to our existing Side Well Gold Project but with the ore purchase agreement and support of leading gold producer Westgold Resources it places us on a pathway to capital light production.”

Settlement of Tranche 1 is scheduled for 12 May 2026, with quotation of those shares expected on 13 May, while the general meeting to approve the transaction, settlement of Tranche 2 and completion of the acquisition are all scheduled for mid June 2026.