Ausgold Limited (ASX: AUC) has received binding commitments from institutional and sophisticated investors for a share placement to raise $11.25 million to continue an extensive exploration and Resource expansion drill program at its 100% owned Katanning Gold Project in Western Australia.
Managing Director, Matthew Greentree, said the company received strong demand for the Placement from institutional and sophisticated investors, which has been corner stoned by Dundee Goodman Merchant Partners, who will increase their interest in the Company from 7.1% to 9.9%.
The company is pleased with the level of support we have received from our cornerstone investor Dundee Goodman and from existing and new investors. This placement of $11.25m now enables Ausgold to progress through a transformational period,” Mr Greentree said.
“With the release of the upgraded KGP Resource of 1.54 Moz at a grade of 1.25 g/t Au, we have a meaningful foundation that underpins our ambition to unlock the scale of the Katanning Gold Project.
“Our new geological model and exploration plan in a whole of belt play is designed to add further high-grade Resource ounces. It is an exciting time to be an Ausgold shareholder.”
Proceeds from the Placement will be used to accelerate exploration, resource development, and conduct additional feasibility studies at the KGP, as well as provide additional working capital.
The company’s flagship Katanning Gold Project is located 275km south-east of Perth and approximately 40km north-east of the wheatbelt town of Katanning. Ausgold holds a dominant ground position in this relatively underexplored greenstone belt, an area prospective for Archean gold deposits.