THE BOURSE WHISPERER: Ausgold (ASX: AUC) announced commitments from institutional and sophisticated investors for a share placement to raise $11.25 million.
Ausgold indicated the raising, at 4.5 cents per share, would fund continued exploration and Resource expansion drill at the company’s 100 per cent-owned Katanning gold project in Western Australia.
The company received strong demand for the Placement from institutional and sophisticated investors, corner stoned by Dundee Goodman Merchant Partners, which will increase its interest in Ausgold from 7.1 per cent to 9.9 per cent.
“The company is pleased with the level of support we have received from our cornerstone investor Dundee Goodman and from existing and new investors,” Ausgold managing director Matthew Greentree said in the company’s ASX announcement.
“This placement of $11.25 million now enables Ausgold to progress through a transformational period.
“With the release of the upgraded KGP Resource of 1.54 million ounces at a grade of 1.25 grams per tonne gold, 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.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE