PERTH (miningweekly.com) – ASX-listed junior Ausgold will raise A$3.9-million through a share placement and entitlement offer to fund exploration work at its Katanning gold project, in Western Australia.
An initial A$1.5-million will be raised through a share placement, priced at 2.5c a share, with about 60.5-million shares issued to professional and sophisticated investors.
The shares will be issued under the company’s placement capacity, and will not require shareholder approval.
A one-for-five nonrenounceable entitlement issue will also be conducted at the same issue price to raise A$2.1-million. About 84-million rights will be issued.
The funds raised will be used to advance exploration at the Katanning project, where recent drilling lifted the resource by 23% to 20.98-million tonnes, at 1.17 g/t gold for 785 800 oz of contained gold.