AuTECO Minerals Ltd (ASX:AUT) has received firm commitments from institutional, sophisticated and professional investors to raise about A$9 million through a placement of 180 million fully paid ordinary shares at five cents per share.
The funds raised will be used to fast-track seasonal exploration work focused on targeting new discoveries at the world-class Pickle Crow Gold Project in Canada as well as to continue to step-out on the high-grade 2.2 million ounces at 7.8 g/t gold inferred resource.
Pickle Crow is one of Canada’s highest-grade gold mines – historically producing 1.5 million ounces at 16.1 g/t.
The placement was well supported by leading domestic and international institutions, indicating the ‘market’s confidence’ in AuTECO’s exploration strategy.
Dual strategy
AuTECO executive chairman Ray Shorrocks said: “Funds from the placement will enable us to fast-track regional exploration work during the winter drill season, in addition to further increasing the size and quality of our existing 2.2 million ounces at 7.8 g/t gold inferred resource at Pickle Crow.
“The quality of the institutions attracted signals the market’s confidence in our dual strategy of growing the high-grade gold resource in the shadow of the mine’s historic headframe, while also drilling our 500 square kilometres of exploration claims to test the scale of the system.
“The regional exploration potential is immense and we are just starting to unlock the discovery potential geologically.
"The significant interest in the placement, which was well supported, also reflects the work delivered to date at Pickle Crow, which has demonstrated the potential to significantly grow resources in the short-term and long-term.”
Placement summary
The issue price represents a 12.3% discount to the last traded price of 5.7 cents on Monday, January 30, 2023, and a 16.1% discount to the 15-trading day volume-weighted average market price of shares, which was 5.96 cents.
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) acted as lead manager to the placement and Argonaut Securities Pty Ltd acted as co-manager.