THE BOURSE WHISPERER: Ausgold Limited (ASX: AUC) informed the market it has received binding commitments from institutional and sophisticated investors for a share placement to raise $2.376 million.
Ausgold indicated it will also be conducting a Share Purchase Plan (SPP) to existing eligible shareholders.
Under the Placement, the company will issue a total of 198 million shares at an issue price of 1.2 cents per share.
Proceeds from the Capital Raising are earmarked for accelerated exploration at the company’s Katanning gold project (KGP), financing an exploration drilling campaign designed to target further high-grade mineralisation within the Central Zone at KGP, the completion of metallurgical test work and to provide additional working capital.
The company indicated the planned drilling program will target Resource extensions including the following recent intercepts of:
26 metres at 6.6 grams per tonne gold from 117m, including 4m at 37.2g/t gold;
16m at 6.2g/t from 114m, including 4m at 22.4g/t gold;
15m at 3.7g/t from 117m, including 5m at 10.4g/t gold; and
17.6m at 2.2g/t gold from 55m.
“An extensive drill campaign will commence immediately targeting high-grade gold mineralisation within the Central Zone of Katanning gold project,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.
“This new drilling will build on the findings of the recent Scoping Study and will include extensions to the high-grade gold mineralisation identified in areas where this mineralisation remains open both along strike and down-dip.
“It is anticipated that drilling these extensions will further expand the current 1.2- million-ounce gold Resource.
“The planned exploration will also extend to Ausgold’s regional targets including the Burong and Nanicup Bridge prospects, leveraging on the recently awarded $150,000 of co-funding provided under the WA Government’s Exploration Incentive Scheme.
“Drilling these prospects, along with other low-cost high-impact exploration programs, will be conducted on Ausgold’s regional land package of over 4,000 square kilometres of underexplored Archean greenstone belt, further developing the company’s geological understanding of the region.
“The company is now well positioned to accelerate its exploration programs at the Katanning gold project and looks forward to updating the market as results become available.”