ASX All Ords gold stock Strickland Metals Ltd (ASX: STK) has smashed the returns delivered by the All Ordinaries Index (ASX: XAO) this past year. Though the gold miner is trailing the benchmark today.
Strickland shares closed yesterday trading for 19.0 cents. In early morning trade on Wednesday, shares are changing hands for 18.2 cents apiece, down 4.2%. For some context, the All Ords is down 0.2% at this same time.
Despite today's dip, shares in the ASX All Ords gold stock remain up a very impressive 160% over 12 months.
The miner should be catching some tailwinds today from the overnight rebound in the gold price, with the yellow metal showing signs of a recovery from the past week's rout. The gold price is up 6.2% since this time yesterday, at US$4,947 per ounce.
After market close on Tuesday, Strickland Metals also reported on promising new exploration results at its Rogozna Project, located in Serbia.
But investors look to be pressuring the stock with the miner also announcing an equity raise at a steep discount to yesterday's closing price.
Here's what's happening.
ASX All Ords gold stock hits high-grade intercepts
Turning to the exploration results first, Strickland reported it has discovered a new body of high-grade gold and copper mineralisation from initial exploration drilling at the Red Creek Prospect, situated within Rogozna.
Among the top results, the ASX All Ords gold stock reported intercepting 4.0 metres at 4 grams of gold equivalent per tonne from 44.0 metres, and 53.0m @ 2.3g/t AuEq from 514.4 metres.
Stickland noted that mineralisation remains totally open for exploration at Red Creek.
"Our world-class team in Serbia have done it again, with exploration drilling at Red Creek, just 1 kilometre from our cornerstone Shanac Deposit, delivering a new high-grade discovery," Strickland managing director Paul L' Herpiniere said.
L'Herpiniere added:
This latest discovery comprises both gold-dominant epithermal mineralisation starting from just 44 metres depth and wider zones of extensive skarn-hosted gold and base metal mineralisation – typical of what we see at other deposits at Rogozna.
Looking ahead, he noted:
We are planning to accelerate drilling at Red Creek to further define the scale of the mineralisation and advance it towards resource status. Given its strategic location, this new discovery further enhances the significant development optionality we already have at Rogozna.
Strickland to raise $55 million
Strickland also announced that it intends to conduct an equity raising by way of an institutional placement of approximately $55 million via the issue of around 343.2 million shares.
The ASX All Ords gold stock looks to be under selling pressure today, with those shares being issued for 16.0 cents apiece. That's 15.8% below Tuesday's closing price.
The miner intends to use the proceeds to fund an additional 70,000 metres of drilling at Rogozna and support the delivery of a Pre-Feasibility Study (PFS). The PFS is targeted for the first half of 2027.
Commenting on the $55 million capital raise, L'Herpiniere said:
The progress made since the Rogozna acquisition last year has delivered outstanding exploration results. However, this is only the beginning.
We have ambitious plans to continue this extraordinary growth and establishing Rogozna as a pre-eminent development project through further exploration and studies.
