Ausgold Limited (ASX: AUC), a mineral exploration and development company focused on gold projects in Western Australia, today announced it has received binding commitments to raise A$35 million through a placement to sophisticated and professional investors. The funds will be used to accelerate the development of the Katanning Gold Project (KGP) in WA. The placement involves issuing approximately 61.4 million new shares at a price of $0.57 per share.
The placement was reportedly well-received by both offshore and domestic institutional investors, including new and existing shareholders. Ausgold’s directors also plan to participate, subscribing for $150,000 worth of shares, subject to shareholder approval. This additional investment comprises Non-Executive Director Paul Weedon subscribing for $100,000 of New Shares and Executive Chairman John Dorward subscribing for $50,000 of New Shares at the Issue Price.
According to the announcement, the proceeds from the placement will be allocated to several key areas. These include accelerating the KGP towards a final investment decision, acquiring freehold land, and funding exploration drilling of high-priority targets near the mine and in regional areas. A portion of the funds will also provide flexibility for deposits on long-lead items, further expediting the KGP’s development. The remaining funds are intended for general working capital purposes and covering the costs associated with the placement.
Ausgold Executive Chairman John Dorward expressed enthusiasm about the successful capital raise, stating it positions the company well to progress towards a final investment decision for the KGP and continue exploring its extensive tenement holding. Settlement of the placement is expected around July 17, 2025, with trading on the ASX on a normal settlement basis commencing July 18, 2025. The issue price represents a 7.3% discount to the last traded price on July 7, 2025.
