G50 Announces Raises A$10.0 million to Fund Extensive Drilling and Testwork at its Gold, Silver and Gallium Golconda Project in Northwest Arizona

Rhea-AI Summary

G50 Corp (OTCQB: GFTYF) has secured A$10.0 million through an oversubscribed placement to Australian institutions at A$0.25 per share, representing a 10.4% discount to the 5-day VWAP. The funding will support extensive drilling and testwork at the company's Golconda Gold-Silver-Zinc Project in Arizona.

The company plans to commence core drilling in September, followed by RC drilling, with a focus on gallium mineralization previously confirmed along one kilometer of Golconda patented claims. The funds will support metallurgical testing, development of a maiden Mineral Resource Estimate (MRE), and initial permitting work.

Notably, the project's gallium component has strategic importance as China currently controls 100% of gallium supply and has banned its export to the U.S., where it's critical for defense products and data center power demands.

Positive

• Secured A$10.0 million in oversubscribed placement with strong institutional support
• Earlier drilling confirmed district-scale gold-silver discovery and consistent gallium mineralization
• Strategic positioning in gallium market amid Chinese export restrictions and U.S. critical mineral demands
• Comprehensive development plan including drilling, metallurgical testing, and resource estimation

Negative

• 10.4% share price discount on placement may dilute existing shareholders
• Early-stage project without defined mineral resources yet
• Dependency on successful metallurgical test results and permitting approvals

TUCSON, Ariz., Aug. 25, 2025 /PRNewswire/ -- G50 Corp Limited (ASX: G50; OTCQB: GFYTF) announced it received firm commitments for a placement among Australian institutions to raise gross proceeds of A$10.million. The placement price of A$.0.25 per share represents a 10.4% discount to the 5-day VWAP. Bell Potter Securities Limited and Morgans Corporate Limited, both based in Australia, acted as Joint Lead Managers and Bookrunners to the Placement.

The over-subscribed placement, which had strong support from existing shareholders and new institutional investors, will be used to fund extensive drilling and testwork at the company's Golconda Gold-Silver-Zinc Project in Arizona. Additional information is available here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02982906-2A1615899&v=4a466cc3f899e00730cfbfcd5ab8940c41f474b6

"With this placement the company is now well funded to implement an extensive drilling program" said Mark Wallace, managing director/CEO of G50. "Earlier this year, drilling at Golconda led to a district-scale gold and silver discovery, while the Reverse Circulation (RC) program confirmed consistent gallium mineralization along one kilometer of the Golconda patented claims."

A track mounted core rig is booked for arrival in September with an RC rig booked to arrive soon after the core drilling is complete. Follow on metallurgical test work for gallium is expected to begin in the current quarter, which will support ongoing discussion for partner and funding opportunities. Base metal and precious metallurgical test work will begin using samples from the upcoming core drilling program and work toward a maiden Mineral Resource Estimate (MRE). Current funding will also support early work for permitting pathways, including baseline studies.

Gallium is a critical metal. "The Chinese control 100% of the supply of gallium and recently prohibited its entry into the U.S.," Wallace said. He added, "The urgency of supply of this metal is significant for the US as it is required for production of defense products and data center power demands."

G50 Corp. (https://www.g50corp.com) is an exploration company focused on the southwestern U.S. The company's flagship Golconda Project comprises both patented and unpatented claims and is ideally positioned near existing mining infrastructure and logistic hubs to meet the United States' growing demand for domestic mineral resources.

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SOURCE G50 Corp Limited

FAQ

How much did G50 Corp (GFTYF) raise in its August 2025 placement?

G50 Corp raised A$10.0 million through a placement to Australian institutions at A$0.25 per share, representing a 10.4% discount to the 5-day VWAP.

What will G50 Corp use the A$10 million funding for?

The funding will support extensive drilling and testwork at the Golconda Gold-Silver-Zinc Project in Arizona, including core and RC drilling, metallurgical testing, development of a maiden Mineral Resource Estimate, and initial permitting work.

When will G50 Corp begin drilling at the Golconda Project?

G50 Corp has booked a track-mounted core rig for September 2025, with RC drilling scheduled to follow after the core drilling program is complete.

Why is G50's gallium discovery significant for the U.S. market?

The discovery is significant because China controls 100% of gallium supply and has banned exports to the U.S., where gallium is critical for defense products and data center power demands.

What previous drilling results has G50 Corp reported at Golconda?

Earlier drilling at Golconda led to a district-scale gold and silver discovery, and RC drilling confirmed consistent gallium mineralization along one kilometer of the Golconda patented claims.