Ausgold has successfully raised $11.25 million in a placement to institutional and sophisticated investors, to continue an extensive exploration and resource expansion drill program at its 100% owned Katanning Gold Project (KGP) in Western Australia.
The placement was corner stoned by Dundee Goodman Merchant Partners, who will increase their stake in Ausgold from 7.1% to 9.9%, with the proceeds to be used to accelerate exploration, resource development, and conduct additional feasibility studies at the KGP, as well as provide additional working capital.
Ausgold’s Managing Director, Matthew Greentree, said the $11.25 million placement would enable the company ‘to progress through a transformational period’.
“With the release of the upgraded KGP Resource of 1.54 Moz at a grade of 1.25 g/t Au, we have a meaningful foundation that underpins our ambition to unlock the scale of the Katanning Gold Project,” he continued.
“Our new geological model and exploration plan in a whole of belt play is designed to add further high-grade Resource ounces. It is an exciting time to be an Ausgold shareholder.”