Ausgold Limited (ASX: AUC) ('Ausgold' or 'Company') is pleased to announce that it has received binding commitments to issue up to approximately 61.4 million fully paid ordinary shares ('New Shares') at an issue price of $0.57 ('Issue Price') per share to raise $35 million under a placement to sophisOcated and professional investors.
The Placement was strongly supported with a number of highly credenOalled offshore and domesOc insOtuOonal investors introduced to the register. The Placement was also well supported by a number of exisOng shareholders. In addiOon to the Placement, and subject to shareholder approval, Non-ExecuOve Director Paul Weedon subscribed for $100,000 of New Shares and ExecuOve Chairman John Dorward subscribed for $50,000 of New Shares at the Issue Price ('Director Placement').
Funds raised from the Placement will be used for: AcceleraOon of the Company's Katanning Gold Project ('KGP') towards a final investment decision ('FID'); AcquisiOon of freehold land, including land that the Company has under opOon; ExploraOon drilling of high priority near-mine and regional targets; Flexibility for payment of deposits on long lead items to further accelerate the development of the KGP and General working capital purposes and costs of the Placement.
Management Comments
Ausgold's ExecuOve 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 midtier 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.'
Details of Placement
A total of 61,403,509 New Shares will be issued in a single tranche under the Placement to raise $35 million. Se?lement is expected to occur on or around 17 July 2025, with trading on the ASX on a normal se?lement basis on 18 July 2025. In addiOon, 263,159 New Shares will be issued under the Director Placement to raise approximately $150,000 on the same terms as the Placement, subject to shareholder approval at a general meeOng to be held in mid-August 2025. Approximately 51,600,000 New Shares will be issued under the Company's ASX LisOng Rule 7.1 capacity and 10,066,668 New Shares under ASX LisOng Rule 7.1A. The Issue Price of $0.57 per New Share represents a discount of 7.3% discount to the last traded price on 7 July 2025 of $0.615. Dundee CorporaOon (Dundee) subscribed for A$2 million (with a relevant interest in the Company upon compleOon of the insOtuOonal Placement of 10.08 %). The issue of New Shares to Dundee is subject to Dundee obtaining approval from the Treasurer under the Foreign AcquisiOons and Takeovers Act 1975 (Cth) (to the extent required).
Contact:
John Dorward
Tel: +61 (08) 9220 9890
Email: investor@ausgoldlimited.com
Nicholas Read
Tel: +61(08) 9388 1474
Email: nicholas@readcorporate.com.au
Forward-Looking Statement
This Announcement includes 'forward-looking statements' as that term within the meaning of securiOes laws of applicable jurisdicOons. Forward-looking statements involve known and unknown risks, uncertainOes and other factors that are in some cases beyond Ausgold Limited's control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentaOon, including, without limitaOon, those regarding Ausgold Limited's future expectaOons. Readers can idenOfy forward-looking statements by terminology such as 'aim,' 'anOcipate,' 'assume,' 'believe,' 'conOnue,' 'could,' 'esOmate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'potenOal,' 'predict,' 'project,' 'risk,' 'should,' 'will' or 'would' and other similar expressions. Risks, uncertainOes and other factors may cause Ausgold Limited's actual results, performance, producOon or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include, but are not limited to, the failure to complete and commission the mine faciliOes, processing plant and related infrastructure in the Ome frame and within esOmated costs currently planned; variaOons in global demand and price for coal and base metal materials; fluctuaOons in exchange rates between the U.S. Dollar, and the Australian dollar; the failure of Ausgold Limited's suppliers, service providers and partners to fulfil their obligaOons under construcOon, supply and other agreements; unforeseen geological, physical or meteorological condiOons, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, poliOcal and other factors; the inability to obtain addiOonal financing, if required, on commercially suitable terms and global and regional economic condiOons. Readers are cauOoned not to place undue reliance on forward-looking statements. The informaOon concerning possible producOon in this announcement is not intended to be a forecast. They are internally generated goals set by the board of directors of Ausgold Limited. The ability of the company to achieve any targets will be largely determined by the company's ability to secure adequate funding, implement mining plans, resolve logisOcal issues associated with mining and enter into any necessary off take arrangements with reputable third parOes. Although Ausgold Limited believes that its expectaOons reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainOes and no assurance can be given that actual results will be consistent with these forward-looking statements.
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