Advance Metals has pulled off a rarity on the ASX by completing a $13 million placement at 10 cents a share, representing a 30 per cent premium to its 20‑day volume weighted moving average price (VWAP). On resumption of trade, Advance shares then rallied a further 30 per cent to a new peak of 13.5c a share, flipping the usual post‑raise script where discounted stock leaks out on day one.
In Advance’s case, demand appears to be chasing the story, not the discount.
Advance Metals will use a portion of the funds from a fresh $13 million capital raising completed at a premium to focus on building ounces at its world-class Guadalupe y Calvon silver-gold project in Mexico.Credit: Supplird
Today’s raise also attracted some heavyweight institutions alongside a few local names. Cornerstones Jupiter Asset Management and Tribeca took a combined $6.5 million in stock, with additional support from Lowell Resources Fund, APAC Resources and Next Investors. The round was led by the company, unbrokered, with the standard 6 per cent fee only applied to a portion facilitated by licensed brokers. The first tranche of new paper is slated for issue on October 13, and tranche two will go out on December 4.
The company says the funds will accelerate a two‑track program focused on building ounces at its world-class Mexican silver‑gold project, while it simultaneously sinks more holes into its high-grade gold prospects in Victoria.
In Mexico, Advance is pushing a maiden program at its recently acquired Guadalupe y Calvon (GyC)silver-gold project and stepping out around strong hits at its Yoquivo and Gavilanes silver plays. In Victoria, the Myrtleford campaign continues to expand an ultra‑high‑grade zone at the Happy Valley gold prospect.
The background numbers tell a compelling story that explains the market demand. GyC adds a published foreign estimate of 9.5 million tonnes at 2.7 grams per tonne (g/t) gold equivalent, contributing to a broader 100-million-ounce gold equivalent portfolio across three projects in the Sierra Madre belt. At Yoquivo, maiden drilling has already punched through very high‑grade shoots, including 1.11 metres at 2,063g/t gold equivalent, while screen‑fire re‑assays in Victoria lifted flagship intervals at Happy Valley to 7.5m at a standout 55g/t and 8.2m at 28.8g/t.
Structurally, the placement was split into two tranches using existing capacity for tranche one and shareholder approval for tranche two. Shares were issued at 10c each, essentially an at-the-market-raise to their 10.5c last close but crucially above recent VWAP. The raise is a near‑unicorn outcome for small caps and a clean read on investor intent with no heavy discount on the raise and no day‑one bleed.
Offshore momentum also appears to be gathering pace with cornerstone global funds now on the register. Driven by international demand, Advance’s board says it is now moving to pursue a North American dual listing to broaden liquidity and align the Mexico story with a larger pool of silver‑gold capital.
With the dual‑listing process now underway, the Mexican drill permits will be followed by the first drill holes at GyC, continued Yoquivo/Gavilanes work and more assays due back shortly from Happy Valley.
