Astral Resources NL (ASX:AAR) earlier this week confirmed it has secured $65.00 million through a placement to support development of the Mandilla Gold Project and ongoing exploration across its Western Australian tenement portfolio.
The company told investors the funding will be applied toward finalising its Definitive Feasibility Study (DFS), expanding its drilling programs, and supporting early development works at Mandilla. It said drilling is also planned across targets at Kamperman and Feysville.
Astral said the DFS remains on schedule for completion in the June 2026 quarter, with a final investment decision expected by September. The company is also progressing environmental and operational approvals, including its mine development and closure plan.
Managing Director Marc Ducler said the funds, together with revenue from a proposed joint venture at Think Big, could significantly close the funding gap for Mandilla. He said the project’s pre-feasibility study outlined a peak funding requirement of $227.00 million, and that Astral is exploring a potential 60:40 or 70:30 debt-to-equity structure.
Ducler said the market may be “surprised” by how close Astral is to full funding, and noted that further updates are expected before the end of the year.
Proactive:
Welcome back to Proactive Newsroom. I'm now joined by Astral Resources Managing Director Marc Ducler. Marc, good to see you again.
Marc Ducler:
Yeah, likewise. Thank you very much for having me.
Proactive:
You've now secured $65 million through a placement this morning. Where will those funds go?
Marc Ducler:
Those funds will go toward several things. Firstly, ensuring the completion of our Definitive Feasibility Study (DFS), which we’re already funded for through our existing cash reserves. We’ll also maintain an aggressive exploration focus across our tenement package. We're excited about targets at Mandilla, just finished drilling at Kamperman, and plan to head back to Feysville next year.
We also acquired a significant tenement package at Feysville earlier this year. We’ve had a successful targeting meeting and are looking forward to getting on the ground there in the new year. So this funding supports all of that — plus, it allows us to advance early works at Mandilla. We'd expect a significant portion of this capital to go toward project development costs.
Proactive:
Speaking of Mandilla — how is the DFS coming along?
Marc Ducler:
The DFS is on track for the June quarter next year. That’s always been our stated timeline, and we’re sticking to it. After that, we’re aiming for a final investment decision in the September quarter.
In parallel, we’re progressing key permitting work — including the native vegetation clearing permit, the mine development and closure plan, and the works approval. These are our main focus at the moment, as they align with our goal of securing environmental approvals around the September quarter as well.
Proactive:
Proceeds from this placement, combined with existing cash and revenue from Think Big — how does that all fit into funding Mandilla?
Marc Ducler:
That’s an important point. With the proposed joint venture with Mineral Mining Services at Think Big, we’re expecting revenue. I hope to share news on that before Christmas. Between that income and the $65 million raised, we’re in a strong position.
Our pre-feasibility study showed a peak negative cash flow of $227 million. Realistically, the DFS number will be higher — they always are. But if we attract a 60:40 or even 70:30 debt-equity split, this raise and the Think Big revenue bring us very close to being fully funded. I think the market will be surprised just how close we are.
Proactive:
Quite a bit happening ahead of the holidays. We’ll check in with you again soon. This was Astral Resources Managing Director Marc Ducler — thank you for your time.
Marc Ducler:
Cheers. Thank you.