St Barbara Limited (ASX: SBM) has announced it has received firm commitments for an institutional placement to raise A$58 million (before costs). St Barbara is an Australian gold producer and explorer with assets in Canada, Papua New Guinea and Australia. The placement was oversubscribed, indicating strong demand from both existing and new high-quality Australian and international institutional investors. The issue price for the placement is A$0.46 per share, representing a 9.7% discount to the 10-day volume weighted average market price (VWAP) of A$0.51.
The funds raised from this placement will be allocated to several key initiatives. These include accelerating the Simberi mobile fleet expansion and conversion, finalising the Simberi Expansion Project Feasibility Study, advancing Pre-Expansion Growth Capital items, completing the Pre-Feasibility Study on the 15-Mile Processing Hub, and advancing plans for the potential re-opening of Touquoy for stockpile processing in Nova Scotia.
According to St Barbara Managing Director and CEO Andrew Strelein, the placement’s success reflects strong support from existing shareholders and the addition of new, high-quality investors. He noted that the funds will enable the company to improve efficiency and reliability at Simberi by changing out the truck fleet, finalise the Feasibility Study, and advance Pre-Expansion Growth Capital items. The proceeds will also facilitate the completion of the Pre-Feasibility Study on the 15-Mile Processing Hub in Nova Scotia, expected in the March quarter of 2026, and support plans for potentially re-opening Touquoy for stockpile processing.
The placement involves the issue of approximately 126.1 million new shares, utilising the company’s existing capacity under ASX Listing Rule 7.1. Settlement of the new shares is expected on 10 October 2025, with allotment, quotation, and trading to commence on 13 October 2025. Argonaut Securities Pty Limited acted as Lead Manager and Bookrunner, with King & Wood Mallesons and Gilbert + Tobin serving as legal advisors.
