Minderoo commits $2m to gold explorer

Andrew Forrest’s private vehicle, Minderoo Group, has subscribed for a majority of A1 Consolidated Gold’s recently announced $2.5 million convertible loan placement.

Minderoo, which encompasses Mr Forrest’s private business holdings and philanthropic work, will provide $2 million towards the placement, which A1 is undertaking as part of a share sale agreement with Victoria-based Octagonal Resources.

“The cash injection from a well-funded and highly respected group in Minderoo should be welcomed by all shareholders,” A1 managing director Dennis Clark said.

“It is a significant vote of confidence in the company and our assets.”

As part of the transaction, former Fortescue Metals Group head of resources strategy John Clout will become a technical adviser to the board of A1.

The company is buying Octagonal’s Victorian assets, which includes an operational 150,000 tonnes per annum gold processing facility at Maldon, in exchange for $5.1 million in shares.

Last month, A1 announced the placement, which was issued to professional investor clients of Patersons Securities, generated an initial commitment of $450,000.

Patersons acted as lead manager to the convertible note issue.

A1 shares were 31 per cent higher to 4.2 cents a share at 12:30pm.