New Murchison Gold (ASX:NMG) Launches Development of Crown Prince Gold Project and Secures $15M in Capital Raising

Jane Morgan Management

West Perth, Australia – New Murchison Gold Limited (ASX:NMG) (“NMG” or “the Company”) is pleased to announce it has commenced development of its high-grade Crown Prince Gold Project, located within the Company’s flagship Garden Gully Gold Project near Meekatharra, Western Australia. The Company has received all required mining approvals and executed key operational contracts, marking a major milestone in its transition from gold explorer to producer.

Following the Final Investment Decision (FID) by the NMG Board, critical equipment and workforce have been mobilised to site, with the first blast scheduled for 30 June 2025. First ore delivery to Westgold Resources Limited’s BBGO processing plant is expected in September 2025.

Mining Approvals and Mobilisation

All necessary environmental and mining approvals have been secured from the Western Australian Department of Energy, Mines, Industry Regulation and Safety (DEMIRS), including approval of the Mining Proposal and Mine Closure Plan. Mining equipment is now being deployed, and clearing operations have commenced following cultural heritage clearances and the receipt of a native vegetation clearing permit.

NMG has awarded the open-pit mining contract to Ozland Mining Services Pty Ltd, following a comprehensive tender and due diligence process. Additional development, drilling, and infrastructure contracts have also been awarded to experienced contractors to ensure timely and efficient delivery.

Ore Delivery Schedule and Production Outlook

NMG expects to deliver approximately 40,000 tonnes of ore per month at an average grade of over 4g/t Au for an initial 24-month period. Ongoing mine planning with Westgold Resources will determine delivery volumes beyond this period. The Ore Reserve mining schedule is underpinned by the Company’s February 2025 feasibility study and maiden Ore Reserve.

$15 Million Capital Raising Secured

To support working capital during the pre-revenue phase, NMG has secured firm commitments to raise $12 million through a two-tranche share placement at $0.017 per share, representing a 5.6% discount to the last closing price. Tranche 1 will settle on 1 July and issue 470.6 million shares, while Tranche 2- subject to shareholder approval in August - will issue a further 235.3 million shares.

Westgold Resources intends to maintain its full pro-rata stake (15.74%) and has subscribed for approximately $2.36 million in the placement.

In addition, the Company has launched a $3 million Share Purchase Plan (SPP) at the same price, open to eligible existing shareholders in Australia and New Zealand. The SPP opens on 3 July and closes on 24 July 2025.

As of March quarter-end, NMG held $21.5 million in cash. Post-site works and drilling, this is expected to reduce to approximately $14.5 million by end-June. Monthly direct operating costs are forecast at $7.5 million at full production. The capital raising provides sufficient runway to production revenues expected in October 2025.

Comment from CEO Alex Passmore

“The receipt of mining approvals and commencement of site works at Crown Prince is a key milestone for the Company and we look forward to rapidly bringing Crown Prince into production. First ore out of the open pit is expected in the coming weeks, with stockpiling and ore crushing in July and August respectively ahead of trucking to BBGO. The capital raising, primarily for working capital requirements, positions the Company strongly to deliver on its plans and we thank investors for their strong ongoing support.”

ABOUT NEW MURCHISON GOLD

New Murchison Gold Ltd (ASX:NMG) is a mineral exploration and development company which holds a substantial package of tenements in the prolific Murchison goldfield near Meekatharra, Western Australia.

The Company is focused on the Garden Gully Gold Project which comprises a 677km² tenure package covering the Abbotts Greenstone Belt and other key regional structures. The project has multiple gold deposits along the belt with the most advanced being the Crown Prince Deposit.

Gold mineralisation in the belt is controlled by major north trending structures and contact zones between felsic and mafic metamorphosed rocks.

NMG updated its Mineral Resource Estimate in November 2024 and reported a maiden Ore Reserve and Feasibility Study for the Crown Prince Deposit in February 2025. This places NMG on track towards becoming a gold producer.

Jane Morgan
Investor and Media Relations
E:[email protected]