Reach Resources (ASX:RR1) strengthens position to advance Murchison South Project

Reach Resources has bolstered its funding position, securing a total of $6.05 million in cash, following the allocation of its non-renounceable rights issue shortfall, a strategic placement to Andel Resources Pty Ltd, and the receipt of a non-refundable option fee from Andel.

The funding provides the company with resources to progress approvals and accelerate development at its Murchison South Gold Project, specifically the Blue Heaven prospect within licence M59/769.

Highlights

• Total cash funding received: $6.05 million before costs
• Rights issue: 2 shares for every 5 held at $0.009 per share; initial $825,855 received and allotted on 28 April 2026
• Full allocation of remaining shortfall under the entitlement issue prospectus: $2,322,098; 258,010,927 shortfall shares to be issued
• Andel Resources placement: 100,000,000 shares (~9.4% of issued capital) plus 25,543,111 shortfall shares; total holding ~9.48%
• $2 million non-refundable option fee from Andel to advance approvals and accelerate project development

The company’s March 2026 entitlement issue offered existing shareholders the opportunity to acquire 2 new shares for every 5 held at an issue price of $0.009 per share. Approximately $825,855 was raised and allotted on 28 April 2026.

The remaining shortfall under the prospectus has now been fully allocated, raising $2,322,098, with 258,010,927 shortfall shares scheduled for issue.

Andel Resources’ participation through a placement of 100,000,000 shares and subscription for 25,543,111 shortfall shares increases its holding to approximately 9.48% of Reach Resources’ shares on issue.

The concurrent issuance of shortfall shares and placement shares ensures full compliance with the terms of the rights issue and regulatory requirements.

The $2 million option fee received from Andel is directed towards key approvals and the acceleration of development activities at the Blue Heaven prospect.

Reach Resources CEO Jeremy Bower stated,

“We are delighted to welcome Andel to the register as a substantial holder in the Company. Having received just over $6 million in cash, we are very well funded and in an excellent position to accelerate work at Murchison South while pursuing any future endeavours with confidence. We would also like to thank Westar Capital for their valued assistance throughout this process”.

From a corporate governance perspective, the placement shares will be issued under the Company’s ASX Listing Rule 7.1 Capacity, ensuring compliance with listing requirements.

The funding structure positions Reach Resources to advance approvals and pre-development work efficiently, providing liquidity certainty to support the progression of the Murchison South Gold Project.

Looking forward, the company’s strengthened capital base allows for the prioritisation of project approvals and operational preparations at Blue Heaven.

The alignment of substantial shareholders and the availability of cash resources provides Reach with the capacity to pursue near-term milestones without reliance on further immediate capital raisings, positioning the company for measured advancement of its gold development objectives within the Murchison region.

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