Resources & Energy Group Limited (ASX: REZ) has announced the completion of a $2.0 million placement to advance its East Menzies Gold Project. Resources & Energy Group Limited is an ASX-listed gold explorer and miner, focused on unlocking the full potential of the East Menzies Gold Project in Western Australia. The placement involved the issue of 142,857,140 fully paid ordinary shares at $0.014 per share. Investors will also receive one option for every two placement shares subscribed, with an expiry date of June 25, 2027, and an exercise price of $0.04. Shareholder approval will be sought for the issuance of these options.
The placement was supported by both new and existing sophisticated and professional investors. The funds raised will be directed towards drilling, resource expansion, and near-term production growth at the East Menzies project. According to the company, a drilling rig has been secured, and drilling is planned to commence on site in late January 2026. The placement shares will be issued under the company’s available placement capacity, with 77,080,592 shares issued under Listing Rule 7.1A and 65,776,548 shares under Listing Rule 7.1.
The company highlighted that the capital raise strengthens its operational momentum following a pivotal year at the East Menzies Gold Project, which included three gold doré pours, key approvals, and resource growth initiatives. Managing Director J. Daniel Moore stated that the capital will allow the company to build on its progress, including securing approval for full-scale commercial vat-leach production and establishing the maiden Mineral Resource at Gigante Grande.
Whairo Capital Pty Ltd acted as the Sole Lead Manager to the Placement. Whairo will receive a fee of 6% of the amount raised, along with the issuance of 20,000,000 options. Directors of REZ will also be issued 10,714,285 shares in lieu of fees. Shareholder approval will be sought for both the issuance of options to Whairo and the shares to directors. The company plans to use the proceeds to advance drilling at Gigante Grande, Goodenough, and Granny Venn, expand the Gigante Grande Mineral Resource, advance the 40,000-tonne vat-leach program at Maranoa, and progress studies for the Menzies modular gold mill.
