THE BOURSE WHISPERER: Ausgold Limited (ASX: AUC) has received binding commitments for a share placement to raise $1.8 million by will issuing 90 million shares at an issue price of two cents each.
Ausgold indicated the fuds raised will be used to advance exploration at the company’s Katanning gold project, with work to include drilling targeting extensions to current Resources, newly identified near Resource targets and regional targets within the broader Katanning landholding and to provide additional working capital.
“We are pleased to have completed this placement which provides funds to commence a significant exploration program at the Katanning gold project,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.
“An RC and EIS co-funded diamond drill program targeting high-grade gold mineralisation north and south of the Jinkas Resource is set to commence in the first week of March.
“This will be followed by a regional aircore drilling program to test gold-in-soil anomalies along the newly identified Western trends located within five kilometres of the Jinkas Resource.
“Both target areas have significant potential to further contribute to the 1.04 million ounce gold Resource within the KGP.
“We look forward to delivering further growth through exploration success as 2019 is shaping up to be an exciting year for Ausgold and its shareholders.”