Astral Resources (ASX: $AAR) $7m placement announcement

Astral Resources NL (ASX: $AAR) has successfully secured firm commitments to raise $7 million through a share placement (Placement) to advance its Mandilla and Feysville Gold Projects, located south of Kalgoorlie in Western Australia. The Company has defined consolidated Mineral Resources of 1.38Moz, and the Placement was well supported by both existing shareholders and new investors, being undertaken within the Company's placement capacity under Listing Rule 7.1 and Listing Rule 7.1A.

Astral Resources' Managing Director Marc Ducler on the $7m placement

We are truly delighted with the strong support received from new and existing investors, particularly given the extremely challenging market environment for gold juniors. The raise will enable the Company to continue to unlock value from both the Mandilla and Feysville projects via our ongoing exploration programs, in respect of which some exciting high-grade results have recently been received, as well as commence the Pre- Feasibility Study for Mandilla. The continuing exploration success at the exciting Kamperman prospect at Feysville gives us increasing confidence that Kamperman will become a valuable contributor of high-grade satellite ore feed to the Mandilla Gold Project development. Assay results from a further 15 RC drill holes at Kamperman are expected to be received imminently. With Mandilla firmly established as one of the best free-milling open pit Resources in WA's Goldfields Region and Feysville firming up as a genuine source of high-grade satellite ore-feed, our confidence in our strategy of building Western Australia's next quality gold mining operation has never been greater.

Astral Resources' $7m placement summary and outlook

Astral Resources NL (ASX: $AAR) has successfully secured a $7 million share placement to advance its Mandilla and Feysville Gold Projects. The funds will be used for diamond and Reverse Circulation (RC) drilling, assays and testwork at the projects, Mineral Resource Estimate updates, exploration and evaluation support, overheads, commencement of the Mandilla Pre-Feasibility Study, and general working capital purposes. The Company's Managing Director, Marc Ducler, expressed confidence in the strategy of building Western Australia's next quality gold mining operation. The ongoing exploration success at the Kamperman prospect at Feysville and the established status of Mandilla as one of the best free-milling open pit Resources in WA's Goldfields Region contribute to the Company's increasing confidence in its strategy.