PERTH (miningweekly.com) – Junior AusGold will raise A$6.35-million through a share placement to fund exploration at its Katanning gold project, in Western Australia.
The company on Thursday said it had received firm commitments from institutional and sophisticated investors, for the placement of 194.15-million shares at a price of 3.27c each.
The share placement will include a A$3-million cornerstone investment from Canadian resource investor Dundee Goodman Merchant Partners.
AusGold MD Matthew Greentree told shareholders that the funds raised in the placement would be used to accelerate drill programmes at Katanning, which would add further high-grade resource ounces, and to advance high priority targets within the company’s significant tenement position.
“The mineral resource at the Katanning gold project is currently 1.2-million ounces, with clear extensions to mineralisation as demonstrated by the recent round of high-grade drill results which should add to the current gold resource at Katanning and further improve the project economics.
“Further drilling is planned to target high-grade mineralisation down dip and north along strike where it remains open,” Greentree said.