Astral Resources NL (ASX:AAR) has added $7 million to the war chest after a share placement received firm commitments from existing shareholders and new investors.
The funds will go to advancing the Mandilla and Feysville gold projects in Western Australia, where the company has defined a consolidated mineral resource of 1.38 million ounces of gold.
About 140 million shares will be issued through the placement at $0.05 per share, with directors subscribing for about 2.1 million.
Building toward gold production
“We are truly delighted with the strong support received from new and existing investors, particularly given the extremely challenging market environment for gold juniors,” Astral Resources managing director Marc Ducler said.
“The raise will enable the company to continue to unlock value from both the Mandilla and Feysville projects via our ongoing exploration programs, in respect of which some exciting high-grade results have recently been received, as well as commence the pre-feasibility study for Mandilla.
“The continuing exploration success at the exciting Kamperman prospect at Feysville gives us increasing confidence that Kamperman will become a valuable contributor of high-grade satellite ore feed to the Mandilla Gold Project development.
“Assay results from a further 15 reverse circulation (RC) drill holes at Kamperman are expected to be received imminently.
“With Mandilla firmly established as one of the best free-milling open pit resources in WA’s Goldfields region and Feysville firming up as a genuine source of high-grade satellite ore-feed, our confidence in our strategy of building Western Australia’s next quality gold mining operation has never been greater.”
The funds will go specifically to:
- Diamond and RC drilling, assays and test work at the Mandilla and Feysville gold projects;
- Mineral resource estimate updates for Mandilla and Feysville;
- Exploration and evaluation support and overheads;
- Commencement of the Mandilla pre-feasibility study; and
- General working capital purposes.
Joint lead managers were Euroz Hartleys Limited and Cumulus Wealth Pty Ltd.