Sierra Nevada Gold Secures $12.85M in Commitments for 25,000m as Safra Drill Program
Sierra Nevada Gold has received firm commitments for a $12.3 million Placement, with a further $0.55 million Director Tranche subject to shareholder approval, bringing the total potential raise to $12.85 million to advance its flagship As Safra Copper-Gold Project in Saudi Arabia. The announcement carries material weight for a small-cap explorer — this is funding that puts drills in the ground at scale, not a bridge raise to keep the lights on.
SNX secures $12.3 million to fast-track As Safra copper-gold drilling
Sierra Nevada Gold (ASX: SNX) has received firm commitments for a capital raising structured in two tranches. The Placement will raise $12.3 million (before costs) through the issue of approximately 123.2 million New CDIs at $0.10 per New CDI — this component is committed and proceeding now under the Company’s existing placement capacity.
A Director Tranche adds a further $0.55 million from directors, management and former management via 5.5 million New CDIs at the same $0.10 price. This tranche is subject to shareholder approval at an Extraordinary General Meeting expected in late-October 2026. It is not yet secured.
Combined, the raising totals $12.85 million. The proceeds fund a Phase 2 program comprising +25,000m of drilling starting within six weeks — definition, expansion and exploration work across a system that Phase 1 confirmed as coherent but still largely untested.
Foster Stockbroking Pty Ltd and Argonaut Securities Pty Limited acted as Joint Lead Managers and Joint Bookrunners to the Placement. The structure reflects institutional confidence — strong support came from existing institutional and sophisticated shareholders, with new institutional funds and family offices also participating.
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Inside the placement pricing and structure
The Offer Price sits within a tight pricing band relative to recent trading. The Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A was used for the single tranche Placement, meaning no shareholder approval is required for this component to proceed.
| Benchmark | Reference Price | Discount to Offer |
|---|---|---|
| Last traded price (21 Aug 2026) | $0.115 | 13.0% |
| 10-day VWAP (to 21 Aug 2026) | $0.105 | 4.4% |
| 15-day VWAP (to 21 Aug 2026) | $0.101 | 0.5% |
Proceeds will be allocated to three areas:
- Rapid exploration and drilling activities at As Safra (drilling, geophysics and associated technical programs)
- Evaluating and advancing additional business development opportunities in Saudi Arabia
- General working capital and corporate purposes
What this tells you: the pricing was tight to market, the raise cleared quickly, and the shareholder base now includes new institutional capital alongside existing holders. That combination signals external validation — funds and family offices writing cheques based on Phase 1 results and the Phase 2 program scale.
What Phase 2 drilling aims to prove at As Safra
This is the operational unlock the market will track. Phase 2 is not a reconnaissance program — it is systematic definition and expansion work designed to prove scale, continuity and geometry across the Central Copper Zone and beyond.
The program comprises:
- +25,000m of RC and diamond drilling
- ~10.5km of trenching
- A combination of definition, expansion and exploration drilling
- Expected to commence within six weeks
Phase 1 drilling confirmed a coherent copper mineralised system across the +800m Central Copper Zone, identified a second copper system at As Safra Southeast, and left a broader 5.5km mineralised corridor still largely untested. Phase 2 targets the metrics that move an exploration story toward a resource — proving the system extends, proving it holds grade at depth, and proving the geometry supports tonnage.
Adam Oehlman, CEO
“Early exploration and drilling results from As Safra have established it as our core strategic focus, with strong results from our Phase 1 drilling program, and a Phase 2 program of +25,000m of drilling expected to commence within six weeks.”
For investors, this is the catalyst timeline: drilling commences within six weeks, results flow through late 2026, and the Company has runway to drill the full program without needing to return to market mid-campaign.
Why Saudi Arabia’s Arabian Shield matters to investors
If you are new to the Arabian Shield story, the jurisdiction context matters as much as the geology. The Arabian Shield is an emerging mining belt in Saudi Arabia — a region where the government has invested heavily in modern mining reforms, infrastructure, and regulatory frameworks designed to attract international exploration capital.
For an exploration company, jurisdiction dictates funding access, permitting speed, and discovery upside. Saudi Arabia is underexplored relative to established copper-gold provinces, which means the discovery potential sits higher on the risk-reward curve. The government’s push to diversify the economy away from oil has created a mining-friendly regulatory environment, and international participation is increasing.
SNX describes As Safra as a district-scale, 100%-owned project within the Arabian Shield. That ownership structure matters — no joint venture partners, no royalty overhang. The Company controls the project fully and can move at pace.
The capital raise is directed at Saudi Arabia, not the Nevada portfolio. That tells you where management sees the growth opportunity. As Safra is the core strategic focus, and this raise funds the program to prove it.
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Nevada portfolio and the road ahead
SNX’s Nevada assets remain on the books but are not the operational priority. The Company is progressing a strategic review and commercialisation process across five 100%-owned Nevada projects spanning epithermal gold-silver, Carlin-style gold, and porphyry copper-gold targets. Frame Nevada as optionality — value that exists but is not driving the current investment case.
The immediate timeline centres on As Safra. Key dates to track:
- ASX announcement and resume trading — Wednesday, 26 August 2026
- Settlement of Placement New CDIs — Tuesday, 1 September 2026
- ASX quotation of Placement New CDIs — Wednesday, 2 September 2026
- EGM to approve Director Tranche — late-October 2026
- Settlement and quotation of Director Tranche — post-EGM, late-October 2026
The Company is fully funded to commence Phase 2 within weeks. Drilling catalysts build through late 2026, and the shareholder base now includes new institutional capital backing the program. For investors tracking early-stage copper-gold exploration in emerging jurisdictions, the next six weeks mark the operational inflection point.
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