AuMEGA targets up to C$10 million raise to fund expanded Newfoundland drilling and exploration

AuMEGA targets up to C$10 million raise to fund expanded Newfoundland drilling and exploration Proactive uses images sourced from Shutterstock

AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF, FRA:FRA: MA30) is looking to raise up to C$10 million through a brokered LIFE offering, with the bulk of the funds to be directed towards exploration in Newfoundland and Labrador.

The company plans to issue up to 42,553,191 flow-through shares at C$0.0470 each, 55,147,059 charity flow-through shares at C$0.0544 each and 125,000,000 common shares at C$0.040 each.

Proceeds from the flow-through shares will be spent on eligible Canadian exploration expenses across AuMEGA’s Newfoundland projects. The company expects to incur the qualifying expenditure by December 31, 2027 and renounce those expenses to subscribers effective December 31, 2026.

Net proceeds from the common share component will be used for general and administrative costs and working capital.

The offer is expected to close around March 3, 2026 (Canada) / March 4, 2026 (Australia), subject to regulatory approvals.

Expanded exploration push

Funds will support an expanded exploration push, including a planned up to 15,000-metre drill program — the company’s largest in the past 4 years — targeting prospects within the broader Cape Ray district, including Isle aux Morts Granite, Cape Ray West and Bunker Hill. Work will also continue at the earlier-stage Hermitage and Intersection projects.

“The company is entering a pivotal phase. Over the past several years, we have methodically advanced our exploration strategy — identifying and de-risking multiple high-priority targets at Cape Ray West and Bunker Hill that now warrant large-scale drilling. This financing is designed to aggressively test those targets. At Isle aux Morts Granite, early Greenfields results point to a previously unrecognised and potentially fertile intrusive-related gold system (“IRGS”)," AuMEGA Metals managing director and CEO Sam Pazuki said.

"The geological characteristics we are observing are comparable in style to major IRGS discoveries such as Snowline Gold’s Valley-Rogue discoveries in the Yukon. Importantly, this target sits within the broader Cape Ray district, several kilometres from our existing Mineral Resource of 6.2 million tonnes grading an average of 2.25 g/t gold, totaling 450,000 ounces of Indicated Resources, and 3.4 million tonnes grading an average of 1.44 g/t gold, totaling 160,000 ounces in Inferred Resources, calculated in 2023 at a conservative gold price of US$1,750 per ounce. We are also evaluating the potential for a resource update incorporating higher gold price assumptions and silver credits.

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"At Bunker Hill, our 2025 field program has identified multiple gold and base metal corridors aligned with compelling geophysical signatures and structural orientations that differ materially from historic interpretations of fertility. These corridors are contiguous with Equinox Gold’s Valentine Gold Mine, a multi- million-ounce deposit that commenced production in the fourth quarter 2025. Recent announcements from Equinox highlight the broader prospectivity of this largely underexplored gold belt. We believe we are witnessing the emergence of a new Canadian gold district. With the largest land position along this structure, AuMEGA with a strong institutional shareholder base and strategic investor in B2Gold, is exceptionally well positioned to make the next significant discovery.”

Is Cape Ray undervalued?

AuMEGA this week said it believes the market is undervaluing its Cape Ray gold project in southwest Newfoundland, pointing to an existing resource and a growing list of nearby exploration targets.

Speaking with Proactive, Pazuki said the company has already outlined what he considers a meaningful gold inventory that may not be fully reflected in the current valuation.

AuMEGA has about 450,000 ounces of gold in the indicated category and a further 160,000 ounces in inferred, at an average grade of around 2g/t. Pazuki said around 95% of the mineralisation sits within about 150 metres of surface.

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