Resources & Energy Group Limited (REZ), an ASX-listed gold explorer and miner focused on the East Menzies Gold Project in Western Australia, announced it has secured firm commitments for a $1.1 million placement (before costs) at 1.5 cents per share. The company is committed to advancing cost-effective gold extraction through innovative processing methods, such as vat leaching while exploring additional high-grade gold deposits within its extensive tenement package. The placement received strong support from professional and sophisticated investors.
The funds raised will be allocated to several key areas. These include supporting the ramp-up of gold production, exploration at priority targets within the East Menzies Gold Project, and the expansion of the vat leach facility, including associated permitting. The proceeds will also facilitate site operations and mining activities at Maranoa, provide working capital, and cover the costs associated with the placement.
REZ Group Managing Director J. Daniel Moore expressed satisfaction with the investor support. He stated that the funds would drive gold production increases, exploration programs, and the expansion of processing capacity at East Menzies. Mr. Moore also noted that with a third gold pour imminent and approval pending for additional vats, REZ is positioned for strong progress in the coming months.
The placement comprises the issue of 73,333,333 new fully paid ordinary shares at 1.5 cents each, representing a 16.7% discount to the last traded price of 1.8 cents. Canary Capital Pty Limited acted as lead manager for the placement and will receive a fee of 6% of the amount raised, plus 5,000,000 REZ options. Directors of REZ will also be issued shares in lieu of fees owing, subject to shareholder approval. Trading of REZ shares resumed on July 3, 2025.
