Exploration and development company Ausgold has garnered robust investor support for the Katanning Gold Project (KGP), in Western Australia, successfully raising A$38-million in a two-tranche placement.
The fundraising was anchored by international institutional investors, including Jupiter Asset Management and Dundee Corporation.
Newly appointed executive chairperson, John Dorward, also committed to subscribing for A$1-million under the institutional placement.
The capital raised will support the work programmes at KGP through to a final investment decision.
“I am enormously excited about Ausgold’s growth potential, leveraging the existing three-million-ounce resource base at the Katanning Gold Project and the company’s large landholding in one of Australia’s great, untapped greenstone belts,” said Dorward.
“Ausgold now has the capital to properly pursue its complementary goals of production and exploration-led growth,” he added.
Ausgold is nearing the completion of the definitive feasibility study for the project development, which is set to be delivered in the second half of the year.
The funding also enables the company to buy key farming properties that cover the main orebody and infrastructure areas of the KGP.
The company will issue about 1.27-million shares at A$0.03 a share to raise the funds.