Investors in Felix Gold Ltd (ASX: FXG) have had a stunning run in 2025.
Shares in this ASX mining stock have rocketed by more than 300% since early January, reaching $0.365 apiece at the time of writing.
For context, the All Ordinaries Index (ASX: XAO) is up by 5.25% across the same period.
However, today has seen a setback with Felix shares sliding by 12% in Monday's trading.
In essence, the drop follows news of an $18 million capital raise.
The strongly supported placement to institutional investors was executed at $0.36 per share, marking a 12.1% discount to the five-day VWAP price in the lead-up to last Wednesday.
And today's sinking share price appears to be adjusting to that discount.
That said, the cash injection could be a blessing for the ASX mining stock as it looks to move its Treasure Creek antimony and gold project in Alaska closer to mining.
Let's find out why.
Image source: Getty Images
Strategic project
Antimony is classified as a critical mineral in the US.
Amongst others, the metalloid has military applications, including its use in night vision goggles, explosive formulations, flares, and infrared sensors.
In addition, the global supply of antimony is highly concentrated, with about 95% coming from China, Russia, and Tajikistan. And China recently imposed a ban on exports to the US.
This geopolitical setting could present a strategic opening for Felix as it looks to become the first antimony producer in the US in more than three decades.
Throughout the year, the ASX mining stock has been reporting rich antimony intercepts from exploration drilling at Treasure Creek, along with shallow and high-grade gold hits.
And proceeds from the placement will now fund further exploration, economic evaluations, and broader operational activities designed to move Treasure Creek closer to mining.
Management viewpoint
Management appears confident in Treasure Creek's ability to help fill the US antimony supply gap.
In particular, it pointed to the project's strong potential for delivering military-grade stibnite – a mineral form of antimony.
Felix Gold Executive Director, Joseph Webb, commented:
Recent technical work has confirmed exceptionally high-purity, near-surface stibnite capable of meeting military-grade concentrate specifications – a capability not achieved outside China in decades – at a time when China's export restrictions have further elevated the need for a US-aligned supply source.
Webb added that Felix is now fully funded to complete updated resource and economic studies, and to advance key engineering and permitting activities throughout 2026.
The ASX 200 mining stock is also preparing a bulk sampling program that could facilitate near-term production and early cash flow, whilst generating data to support longer-term development plans.
Separately, results from more than 100 recent drill holes at Treasure Creek are expected in the coming weeks.
