Ausgold snares $38 million from big investors to finish Katanning gold studies and land grab

Perth junior Ausgold has lined up $38 million from investors to finish studies and buy farming properties covering the gold project in Katanning it’s proposing to develop. Ausgold told the market proceeds from the placement would be enough to see it through to a final investment decision, including land acquisitions and a definitive feasibility study for its flagship Katanning gold project. The find is about 40km north-east of the town and is hoped to make Ausgold Australia’s “next mid-tier gold producer”. There will be about 1.2 billion new shares issued to sophisticated and institutional investors at a 14.3 per cent discount on Ausgold’s last close, at 3¢ each. London fund manager Jupiter Asset Management has used the raising to bump up its holding to 12.7 per cent, and existing investor Dundee Corporation has kept a 10.9 per cent stake, which will require approval from the Foreign Investment Review Board. The explorer has previously said the definitive feasibility study was on track for this quarter but has been pushed back again to later this year, with a final investment decision targeted for the end of 2024 or the start of 2025. Ausgold executive chair John Dorward plans to take up $1m worth of stock. “We are now completing the final elements of the Definitive Feasibility Study for the project development, which will be delivered in the second half of this year,” he said. “Funding also enabling the company to complete the acquisition of key farming properties that cover the main orebody and infrastructure areas.” Shares in Ausgold had fallen about 5.7 per cent to 3.3¢ after coming out of a trading halt.