Gold explorers raise $8.9m

Perth-based explorers Ausgold and Great Western Exploration have sought funds to progress their gold projects in Western Australia.

Ausgold has received commitments to raise $6.35 million from share placement, which the company says will go towards resource drilling at its wholly-owned, 1.2 million ounce Katanning project.

Managing director Matthew Greentree said the programs were expected to add further high-grade ounces to the project, as well as advance high priority targets within the company’s tenements.

“Further drilling is planned to target high-grade mineralisation down dip and north along strike where it remains open,” Mr Greentree said.

“With this new funding, Ausgold will be expanding its current drill programs and we look forward to updating the market with further exploration success.”

Ausgold will issue around 194 million shares priced at 3.3 cents each, with a cornerstone investment received from Dundee Goodman Merchant Partners, which is taking a new, significant shareholding in the company.

Shares in Ausgold closed up 17 cents to trade at 4.1 cents each.

Meanwhile, Great Western Exploration has raised $2.5 million – backed by Emerald Resources executives Simon Lee and Morgan Hart – with the proceeds to go towards exploration drilling at the company’s Golden Corridor project.

The project comprises an untested 60-kilometre strike of the Agnew-Wiluna greenstone belt, where an exploration program targeting the Finlayson prospect and five newly-identified targets is being planned.

Great Western will issue 14 million shares priced at 18 cents per share, with the placement being managed by Hartleys.

The deal represents a 5.3 per cent discount to Great Western’s last closing price of 19 cents.

The company closed up 13 per cent on the ASX today to trade at 22 cents per share.