Arika Resources Ltd. has secured AU$6.55 million through a share placement to accelerate exploration across its Western Australian gold projects.
The capital raising was cornerstoned by specialist resource investment firm Lion Selection Group, which will emerge with a substantial 6.7 per cent stake in Arika post-completion.
Under the offer, Arika will issue approximately 344.7 million new fully paid ordinary shares at 1.9 cents per share.
In addition to the institutional placement, eligible Arika directors intend to participate for an additional AU$700,000, subject to shareholder approval at a general meeting scheduled for early September.
Proceeds will fund an expanded 20,000-metre drilling campaign across the company’s Yundamindra and Kookynie gold projects in the Eastern Goldfields.
Drilling is already underway at Kookynie, marking the first exploration activity at the site in more than five years.
Despite a history of significant high-grade gold production, the area remains under-explored and presents compelling exploration upside.
Arika Managing Director Justin Barton said the strong institutional backing positions the company to advance its asset portfolio rapidly.
“We are delighted by the exceptional level of support received for this capital raising, despite challenging equity market conditions,” Barton said.
“The quality of the institutions participating in the Placement is particularly pleasing, highlighted by Lion Selection Group’s decision to become a substantial shareholder. Lion has a long and successful track record of identifying and backing emerging Australian resource companies, and we are delighted to welcome them to the register.”
Barton added that the strengthened balance sheet leaves the miner fully funded to execute an aggressive growth strategy focused on expanding known mineralisation, testing high-priority regional targets, and progressing towards maiden mineral resource estimates.
The new shares will be settled on July 31.