28/02/2019 - 12:00

Gold juniors to raise up to $13.1m

28/02/2019 - 12:00

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Bardoc Gold will raise up to $11.3 million via a share placement and rights issue, while Ausgold will raise $1.8 million through a share placement, with both companies to put the funds towards their respective flagship projects.

Gold juniors to raise up to $13.1m
Both companies will put the funds towards their respective flagship gold projects.

Bardoc Gold will raise up to $11.3 million via a share placement and rights issue, while Ausgold will raise $1.8 million through a share placement, with both companies to put the funds towards their respective flagship projects.

Bardoc will undertake a $7 million share placement at an issue price of 4 cents per share.

It will also launch a 1-for-10 non-renounceable pro rata entitlements issue to raise up to a further $4.3 million, also at an issue price of 4 cents per share.

The issue price represents a 16.65 per cent discount to its 10-day volume weighted average price of 4.8 cents.

In a statement, the company said the capital raising will be used to develop its Bardco gold project in the North Kalgoorlie region.

This will include high-impact drilling across multiple newly-identified exploration targets at the Bardoc, progress development studies, and for acquisition opportunities in the North Kalgoorlie region.

After completing mergers with Aphrodite Gold and Excelsior Gold in 2018, Bardo consolidated a 200 square kilometre land-holding to establish the project.

The placement is underpinned by a new international strategic investor group associated with Sydney-based business executive Mr Tony Leibowitz, who has participated in the placement and joined the Bardoc board as non-executive chairman.

Bardoc Gold managing director John Young said the company was led by an experienced team who would use the funds to allow Bardoc to fast-track its strategy.

“This is essentially the same corporate team and investor group that got Pilbara Minerals off the ground in 2014 at a time when risk capital for junior explorers was extremely hard to come by,” Mr Young said.

 “We are intending to apply a similar philosophy at Bardoc Gold by pursuing a multi-pronged exploration and growth strategy aimed at rapidly growing our existing 2.6 million ounce Resource base while simultaneously pursuing sensible and value-accretive acquisition and M&A opportunities.

Ausgold announced it received binding commitments to raise $1.8 million to fund exploration at its Katanning gold project, located near its namesake town.

The placement has an issue price of 2 cents each, which is a 13 per cent discount on its previous closing share price of 2.3 cents each.

Ausgold managing director Matthew Greentree said the company was pleased to have completed the placement, which provides funds to commence a significant exploration program at the Katanning Gold Project.

“An RC and EIS co-funded diamond drill program targeting high-grade gold mineralisation north and south of the Jinkas Resource is set to commence in the first week of March,” Mr Greentree said.

“This will be followed by a regional aircore drilling program to test gold-in-soil anomalies along the newly identified Western trends located within 5km of the Jinkas Resource.

“Both target areas have significant potential to further contribute to the 1.04 Million ounce gold Resource within the KGP.”

Shares in Bardoc were down 11.45 per cent to trade at 4.5 cents each at 12pmAEDT.

Shares in Ausgold were down 8.7 per cent to trade at 2.1 cents each at 2.20pmAEDT.

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