BMG Resources (ASX: BMG) has successfully launched a $2.5 million capital raise, which includes appointing a new CEO and significantly expanding its exploration drilling program at its key Western Australian gold projects.
BMG Resources raised the funds at $0.021 per share through a two-tranche placement. Tribeca Investment Partners is a cornerstone investor in this raising.
Funds will accelerate an upsized 10,000m drill program at the Abercromby and Bullabulling gold projects. This program is aimed at growing the existing 518,000 oz Abercromby MRE.
The placement includes fees of 6% to GBA Capital Whario. The company will also issue 15 million options exercisable at $0.03 until December 31, 2027.
New CEO and Strategic Goals
Ben Pollard has been appointed as the new CEO. He will receive a base salary of $300k AUD and 40 million performance rights tied to company milestones.
The company plans to advance a scoping study for a low-capex, fast-payback mining proposition at Abercromby. This study is targeting completion in Q1 2026.
The capital also supports exploration at the 100% owned Bullabulling project, which is adjacent to the Bullabulling Gold Mine.
Shareholder Approval and Tranche Structure
The capital raise is structured in two tranches. Tranche 1 shares, totalling 73.5 million, are scheduled for settlement around February 10, 2026, with quotation on February 11, 2026.
Tranche 2, for 45.55 million shares, requires shareholder approval. This approval is expected by mid-March 2026.
Investor relations services will be provided by S3, involving the issuance of 19.6 million new shares, also subject to shareholder approval.
The need for shareholder and regulatory approvals for the second tranche and IR shares introduces near-term considerations.
Context: Prior Funding and Project Status
This follows a $2.5 million placement completed in December 2025 at $0.017 per share. Those funds were allocated to major drill programs at Abercromby and Bullabulling West.
BMG Resources' 2025 annual report highlighted the Abercromby maiden Mineral Resource Estimate of 11.12 Mt at 1.45 g/t Au for 518,000 oz, alongside ongoing scoping work.
Previous coverage in July 2025 noted a toll treatment agreement with Wiluna Mining for the Matilda processing plant.
The company has consistently sought to fund its exploration and development. Previous trading halts in December 2025 and February 2026 preceded announcements of institutional-led capital raises.
Prior coverage in December 2024 and November 2024 confirmed BMG's focus on drilling at Abercromby to expand its resource.
Outlook and Risks
BMG Resources is strategically positioning itself for accelerated resource growth with a significant capital injection and new leadership.
The success of the enlarged drill program and the advancement of the Abercromby scoping study will be key catalysts, although potential dilution and the need for shareholder approvals for the second tranche present near-term considerations.
