Ausgold Raises $38M to Fast Track KGP Development
THE BOURSE WHISPERER: Ausgold has raised $38 million to accelerate development of the company’s 100 per cent-owned Katanning Gold Project (KGP) in Western Australia.
Ausgold reported it has received firm commitments totalling $38 million in a two-tranche placement to institutional and sophisticated investors.
The company indicated the funds raised will primarily be used to underpin ongoing work programs at the 3.04 million ounce KGP through to a Final Investment Decision (FID), including the completion of the Definitive Feasibility Study (DFS), settlement of freehold land acquisitions, continuation of regional exploration and the provision of working capital as well as to fund the redemption of unsecured loan notes issued by the company.
The raising received strong demand from large institutional investors from UK, Europe and North America and was heavily supported by contributions from key existing shareholders.
Ausgold’s newly appointed executive chairman John Dorward was a notable contributor committing to subscribe for $1 million under the Institutional Placement, subject to Ausgold obtaining shareholder approval for the purpose of the ASX Listing Rules.
“This landmark capital raising will underpin the completion of key work programs at the Katanning Gold Project, which will position Ausgold for a pivotal phase of growth,” Ausgold managing director Matthew Greentree said in the company’s ASX announcement.
“We are now completing the final elements of the Definitive Feasibility Study for the project development, which will be delivered in the second half of this year.
“Funding also enabling the company to complete the acquisition of key farming properties that cover the main orebody and infrastructure areas.
“Further project de-risking will include a program of grade control drilling and the placement of orders for long-lead items for the project development.
“Exploration along the 17 kilometres KGP mine trend and thirteen drill ready regional targets will aim to deliver the multi-million-ounce potential at Katanning.”
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