Ausgold Limited (ASX:AUC) Announces $35M Funding for Katanning Gold Project
Financing Details
Ausgold Limited (ASX: AUC) has secured binding commitments to raise A$35 million by issuing approximately 61.4 million new shares at $0.57 each. The Issue Price represents a 7.3% discount to the last traded price of $0.615 on 7 July 2025.
The placement garnered strong support from prominent offshore and domestic institutional investors, including new and existing shareholders. Additionally, directors Paul Weedon and John Dorward have committed to subscribing $150,000 collectively in new shares, pending shareholder approval.
Dundee Corporation (Dundee) subscribed for A$2 million, which will equate to 10.08% interest in the Company upon completion of the placement.
Use of Proceeds
The funds raised will accelerate the Katanning Gold Project’s progress towards a final investment decision. Investments will include purchasing long-lead-time items, ongoing exploration, and acquiring freehold land. This capital injection also provides flexibility for deposit payments and general working capital needs.
Executive Comments
Executive Chairman John Dorward stated, “The recent on-time and on-budget successful completion of the Definitive Feasibility Study for the Katanning Gold Project was a major milestone on the road to Ausgold becoming Australia’s next mid-tier gold producer. This new capital stands us in good stead to progress works in relation to our next goal of rapidly accelerating the development of the KGP to a final investment decision and continuing to explore our extensive tenement holding. I am delighted with the support of many of our existing shareholders and welcome a few new high-calibre institutional investors to the Ausgold register.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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