Resources & Energy Group Secures $1.1 million to Drive Gold Production at East Menzies

Highlights:

• Resources & Energy Group Limited (ASX: REZ) has raised $1.1 million via a placement at 1.5 cents per share, a 16.7% discount to its last traded price.
• Funds will support gold production ramp-up, exploration drilling, and vat leach expansion at the East Menzies Gold Project.
• Post-raise, REZ’s market capitalisation stands at approximately $11.17 million, with over 744 million shares on issue at the time of writing.

Capital Raise to Fuel Production and Exploration

Resources & Energy Group Limited (ASX: REZ) has successfully raised $1.1 million through a placement to professional and sophisticated investors, aimed at accelerating development of its East Menzies Gold Project. At the time of writing, the placement shares were issued at 1.5 cents, representing a 16.7% discount to REZ’s last traded price of 1.8 cents.

The capital will be deployed across several key areas, including vat leach facility expansion, exploration drilling, and site operations at the Maranoa mining area. REZ Managing Director J. Daniel Moore welcomed the strong investor backing, highlighting that the funds will position the company for robust progress, especially with a third gold pour imminent and permitting underway for additional vats.

Placement Details and Market Outlook

The placement comprises 73.3 million new shares, to be issued under REZ’s existing capacity per ASX Listing Rules 7.1. Shares will rank equally with existing stock, pushing the total issued capital to approximately 745 million shares and placing REZ’s market capitalisation at around $11.17 million at the time of writing.

As part of the placement, lead manager Canary Capital Pty Ltd will receive a 6% fee and 5 million REZ options, exercisable at 4 cents with a three-year expiry. Directors will also receive 23.3 million shares in lieu of unpaid fees, pending shareholder approval.

Strategic Progress at East Menzies

Funds from this raise will support REZ’s near-term gold production targets and expand processing capacity to meet increasing demand. With exploration drilling also on the agenda, the company aims to unlock further value across its ~100km² tenement in the prolific East Menzies gold district.

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