06/08/2012 - 15:27

AusGold seeking $9m to advance exploration

06/08/2012 - 15:27

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AusGold seeking $9m to advance exploration

Gold miner AusGold has announced a plan to raise $9 million to continue exploration and resource development at its Katanning gold project.

AusGold said it had completed a placement to raise $6.8 million, priced at 33 cents per share, and will also launch a $2 million share purchase plan, also priced at 33 cents per share.

GMP Securities acted as lead manager and bookrunner to the placement, which saw London Alternative Investment Market-listed Praetorian Resources emerge as a substantial shareholder.

AusGold chief executive Andrew Tunks said the proceeds from the placement and share purchase plan would fund exploration at Katanning as well as regional exploration across the company’s 200 kilometres of tenement holdings.

“The significant support we have received from our current institutional shareholder base under challenging market conditions affirms the company’s strategy to define a significant resource from the extensive greenstone belt controlled by Ausgold in the Katanning region,” Mr Turks said.

“The funds will allow AusGold to maintain a structured exploration programme in the highly prospective and under-explored great southern region of Western Australia and will also allow us to progress key anomalies we have identified at Cracow in Queensland.”

At close of trade today, AusGold shares were steady at 38 cents. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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