Ausgold raises $38m through institutional placement

Ausgold Limited (ASX: $AUC) has successfully secured A$38 million through an institutional placement to accelerate the development of the Katanning Gold Project in Western Australia. The placement, cornerstoned by leading international institutional investors, reflects strong support for the project. The funds will be utilized to underpin ongoing work programs at the 100%-owned 3.04Moz Katanning Gold Project, including the completion of the Definitive Feasibility Study (DFS), settlement of freehold land acquisitions, and regional exploration.

Executive Chairman and Managing Director's Comments on Funding

Ausgold's Executive Chairman, John Dorward, expressed excitement about the company's growth potential and the opportunity to leverage the existing resource base at the Katanning Gold Project. He highlighted the significance of the placement in positioning the company strongly through to a Final Investment Decision, expressing gratitude to existing shareholders and welcoming new investors. Managing Director, Matthew Greentree, emphasized the capital raising's role in underpinning key work programs at the Katanning Gold Project, positioning Ausgold for a pivotal phase of growth. He outlined the completion of the Definitive Feasibility Study and the acquisition of key farming properties as key focus areas, along with exploration activities aimed at realizing the project's multi-million-ounce potential.

Utilization of Funds and Outlook

The A$38 million raised through the institutional placement will primarily support ongoing work programs at the 3.04Moz Katanning Gold Project, including the completion of the Definitive Feasibility Study, settlement of freehold land acquisitions, and regional exploration. Additionally, the funds will provide working capital and facilitate the redemption of unsecured loan notes issued by the company. With strong demand from institutional investors and existing shareholders, Ausgold anticipates having approximately A$36 million cash on hand post-placement. The completion of key work programs and exploration activities is expected to position Ausgold for significant growth and project de-risking, ultimately contributing to the realization of the Katanning Gold Project's production and exploration-led goals.