Ausgold Fills Coffers for Katanning Drill Push

THE BOURSE WHISPERER: Ausgold Limited (ASX: AUC) is well and truly cashed-up for drilling planned at the company’s 100 per cent- owned Katanning gold project in Western Australia.

Ausgold announced it had binding commitments from institutional and sophisticated investors for a share placement to raise just over $6.3 million to underpin an extensive exploration and Resource expansion drill program at it’s the Katanning gold project.

The raising included a $3 million cornerstone investment from Canadian resources investor, Dundee Goodman Merchant Partners.

The company indicated the proceeds will be used to accelerate Resource drilling within the Central Zone at the Katanning project, which currently boasts a JORC Resource of 1.2 million ounces of gold.

“We are pleased to welcome our new investors, including Dundee Goodman Merchant Partners (DGMP), as significant shareholders in Ausgold,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Following the completion of a thorough due-diligence process, DGMP share our view of the significant potential of the Katanning gold project (KGP).

“The funds raised in this placement will be used to accelerate drill programs at the KGP, which are expected to add further high-grade Resource ounces and to advance high priority targets within the Company’s significant tenement position.

“The Mineral Resource at the KGP is currently 1.2 million ounces with clear extensions to mineralisation as demonstrated by the recent round of high-grade drill results which should add to the current gold Resource at Katanning and further improve the project economics.

“Further drilling is planned to target high-grade mineralisation down dip and north along strike where it remains open.

“With this new funding Ausgold will be expanding its current drill programs and we look forward to updating the market with further exploration success.”