Ausgold Limited (ASX: AUC) has received binding commitments from investors for a share placement to raise A$16.6 million.
Funds raised will primarily be used to continue an extensive exploration and Resource expansion drill programme and feasibility studies at the company’s 100% owned Katanning Gold Project in Western Australia.
The company received strong demand for the Placement which has been cornerstoned by two institutional investors subscribing for A$9 million of the total A$16.6 million raise, including existing shareholder Dundee Corporation which has subscribed for A$4 million (taking its interest in the Company from 9.5% to 12.5% once the Placement is fully complete) and new institutional investor Jupiter Asset Management which will emerge with a 6.2% holding at the completion of the Placement.
“The company is pleased with the continued support we have received from our cornerstone investor Dundee Corporation as well as other existing and new institutional investors,” Managing Director, Matthew Greentree, said.
“This placement of A$16.6m now enables Ausgold to continue its targeted drilling campaign of key areas within the Central and Southern Zones as we progress towards the planned April Resource Upgrade and completion of Pre-feasibility studies to deliver a maiden Ore Reserve Statement in June.
“With the release of the upgraded KGP Resource of 1.84 Moz at a grade of 1.24 g/t Au, we have a meaningful foundation that underpins our ambition to unlock the multi-million ounce potential of the Katanning Gold Project.”
Following completion of the Placement, the company will have approximately A$17.5 million cash on hand.
For further information please visit: https://ausgoldlimited.com/
