Ausgold Limited (ASX: AUC), a mineral exploration and development company focused on gold projects in Western Australia, has announced a significant land acquisition crucial for advancing its 100%-owned Katanning Gold Project (KGP). The binding agreement, signed with unrelated parties, secures approximately 860 hectares of freehold land, resolving a legal dispute that has been ongoing since August 2023 and paving the way for project development. The KGP is located 275km south-east of Perth.
The acquired land encompasses a substantial portion of the KGP Mineral Resource and open pit mineable gold ounces, as outlined in the Definitive Feasibility Study (DFS) from June 2025. This acquisition eliminates the need for ongoing legal action related to mining rights on Mining Licence ML70/211. Furthermore, the land includes a significant buffer zone around ML70/211, enhancing future expansion opportunities for the Katanning Gold Project. Ausgold will now undertake a further optimisation of the DFS mine plan.
With the land acquisition complete, Ausgold plans to commence a multi-rig drilling program targeting down-plunge extensions of the Central Zone and de-risking the initial years of production. The company has immediate access to the land for exploration, studies, and surveys. This drilling program aims to expand the resource base and improve the project’s economics. Ausgold expects to be able to deliver material enhancements to the existing project as it progresses its permitting and financing activities towards a Final Investment Decision.
The total consideration for the acquisition is $35 million, covering land acquisition costs and compensation for relocation of current occupants. The payment is staged, with $15 million due by 26 August 2025, and the remaining $20 million payable upon a Final Investment Decision or by 26 August 2026, whichever occurs first. As of 31 July 2025, Ausgold had $45 million cash on hand. Vendors are required to vacate the Land by 28 February 2027, prior to the anticipated start of mining operations.
