Corporate Showcase

The Challenge

Barclay Pearce Capital first started working with Resources and Energy Group Limited (ASX:REZ) in February 2020. We were impressed by the company’s assets but recognised there was still a long journey ahead but they had the potential to make a major gold discovery. 

While having a strong corporate strategy, they needed guidance to reach their long-term objectives of transforming from a gold explorer to producer. Capital was key and would be vital in order to conduct further exploration to extend and upgrade the resource at their highly prospective tenement portfolio. 

Our Solution

To fuel their expansion, Barclay Pearce Capital raised A$3.3m in equity capital (October 2020) to fund regional exploration drilling at the Mount Mckenzie and East Menzies mines and for working capital purposes. The transaction was priced at $0.075 (7.5c), reflecting a 300% uplift from when BPC was first introduced to the company in February.

The Outcome

The capital has enabled a number of key milestones to be achieved in 2021. Top of the list is the commencement of operations in July 2021 at “Granny Venn” the WA-based mine forming part of the East-Menzies Gold Project. The EMGP covers a ~100km² area and as of July 2021 has a JORC 2012 inferred and indicated resource of 63k oz of gold. 

The Mount Mackenzie Gold and Silver Project located in Queensland has also progressed with drill operations completed in April 2021. The coring samples recovered have been sent for metallurgical and processing evaluation. A July 2020 scoping study returned an indicated and inferred (JORC 2012) resource totalling 129k oz of gold and 862k oz of silver.  

While the share price has retreated from its late 2020 highs, primarily due to the performance of spot gold over that period, REZ continues on with its work and represents significant value to investors at its current levels. As the gold price continues to recover thanks to high inflation and economic uncertainty, REZ is well-positioned to capitalize on this as it starts to transition from exploration to production.