Ordell Minerals Raises $7M to Expand McNabs East High-Grade Gold Drilling

Ordell Minerals Raises $7 Million to Accelerate High-Grade Gold Drilling at Barimaia

Ordell Minerals Limited (ASX: ORD) has secured $7 million in fresh capital from institutional and sophisticated investors, with the funds earmarked to fuel an aggressive ~15,000-metre drilling campaign at its Barimaia Gold Project in Western Australia over the next three months. This Ordell Minerals Barimaia gold drilling program funding and McNabs East high-grade gold expansion signals a clear step-up in exploration ambition.

The company is zeroing in on extensions to high-grade gold mineralisation at the McNabs East Prospect whilst simultaneously hunting for new discoveries across the broader project area. Furthermore, continued early-stage programmes at the Goodia and Fisher South Gold Projects give investors a well-stocked pipeline of near-term news flow.

The Placement at a Glance

Ordell has moved swiftly, securing binding commitments from both existing and new investors ahead of an expected allotment date of 22 May 2026. The structure is clean and straightforward.

The shares will be issued in a single tranche, with 4,682,909 New Shares issued under ASX Listing Rule 7.1 capacity and 6,428,203 New Shares under ASX Listing Rule 7.1A. All New Shares rank equally with existing ordinary shares.

The modest discount to the last traded price reflects strong investor appetite — a sign of confidence in the company's near-term drilling story rather than a distressed raise.

How Will the Funds Be Deployed?

Ordell has been transparent about its capital allocation priorities. The use-of-funds breakdown reinforces that this is a drill-focused raise with a clear operational mandate:

1. McNabs East extensions and new discoveries — Targeting significant mineralisation extensions and new finds at the headline McNabs East Prospect within Barimaia.
2. Broader Barimaia Gold Project exploration — Widening the discovery net across the project footprint beyond the known McNabs East zone.
3. Goodia and Fisher South Gold Projects — Sustaining early-stage exploration at two additional project areas.
4. General working capital and placement costs — Maintaining operational stability throughout the drilling campaign.

Managing Director Michael Fowler commented directly on the raise, stating: "We are very pleased to have the support of existing and new institutional and sophisticated investors as part of this important raising, which will allow us to accelerate and expand our ongoing drilling programs at Barimaia."

He added: "Investors can look forward to strong news-flow in the months ahead as we continue to drill at Barimaia and continue with our exploration programs at Goodia and Fisher South."

Understanding the Drilling Programme

Why Do Metres Drilled Matter?

For investors less familiar with exploration-stage gold companies, a ~15,000-metre drilling programme is a substantial commitment for a junior explorer. It represents the equivalent of drilling roughly 150 holes at 100 metres average depth, though individual holes vary considerably depending on targets.

More metres drilled means more data, faster. Denser drilling accelerates the company's understanding of a deposit's geometry and grade continuity. A concentrated three-month programme also creates a steady rhythm of assay results, generating consistent news flow that keeps investors informed and the market engaged.

Key Exploration Terms Explained

• Mineralisation: The presence of economically interesting metals within rock.
• High-grade: Gold concentration above the industry average, often translating to stronger project economics.
• VWAP: The average share price weighted by trading volume — commonly used as a reference point for capital raise pricing.
• Prospect: A specific target area within a broader project where exploration activity is focused.

What's Ahead: Three Months of Drilling News Flow

Ordell has set a clear operational timeline. Investors now have a defined window in which to watch for results.

The emphasis on "strong news-flow in the months ahead" from the Managing Director is an important signal. In the exploration sector, consistent drill results are a key driver of market attention and share price momentum.

From Drilling to Resource Definition

The Exploration Process

Gold exploration begins with geological mapping and sampling across broad areas to identify zones where mineralisation may be present. However, drilling programmes represent the most critical phase. When companies like Ordell conduct drilling, they are physically extracting rock samples from specific depths to analyse gold content and geological characteristics.

Types of Drilling

Reverse Circulation (RC) drilling uses compressed air to bring rock chips to the surface, providing cost-effective sampling for initial exploration phases. In addition, diamond drilling extracts intact rock cores, offering higher-quality samples for detailed geological analysis, albeit at greater cost.

High-Grade Significance

High-grade gold mineralisation offers several economic advantages. Higher grades typically require less rock processing to extract equivalent gold volumes, reducing operational costs. They also support smaller-scale, lower-capital mining operations — making projects viable where lower grades might not be economic.

The focus on extending high-grade mineralisation at McNabs East suggests Ordell is building on proven geology, a strategy that typically carries lower geological risk.

Why Investors Should Keep Ordell on Their Radar

Ordell Minerals is at an inflection point that experienced exploration investors know well: freshly funded, drills turning, and results expected to flow across a defined near-term window. The Ordell Minerals Barimaia gold drilling program funding and McNabs East high-grade gold expansion represents a concentrated effort to build on existing geological understanding whilst maintaining exploration upside.

Several elements combine to present a compelling near-term investment narrative:

• Funding is secured: $7 million committed, allotment expected 22 May 2026
• Drilling is active: ~15,000 metres planned across the next three months
• Results are coming: Management has explicitly flagged strong news flow ahead
• Multiple fronts: Barimaia, Goodia, and Fisher South all in play simultaneously
• Institutional backing: Both existing and new institutional investors participated, lending credibility to the near-term thesis
• Established jurisdiction: Barimaia sits in Western Australia, one of the world's most mining-friendly gold jurisdictions

Furthermore, the involvement of institutional money — which typically demands a higher bar for due diligence — reinforces confidence in Ordell's exploration direction.

"We have ~15,000m of drilling planned over the next three months, aimed at significantly expanding the high-grade mineralisation intersected to date at McNabs East and making new discoveries," Fowler noted.

The Ordell Minerals Barimaia gold drilling program funding and McNabs East high-grade gold expansion strategy reflects a company with clear operational priorities and the capital to execute them. The next three months should provide significant clarity on the company's exploration thesis across multiple projects.

For more information, visit www.ordellminerals.com.au

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