Astral Resources NL (ASX:AAR) has the money to accelerate exploration at key projects, having raised around $25 million through a well-supported two-tranche share placement to institutional, professional and sophisticated investors.
Fast-tracking exploration
The funds will be used to fast-track exploration and evaluation activities at the company's Mandilla and Feysville gold projects, south of Kalgoorlie, Western Australia.
This includes the completion of pre-feasibility (PFS) and definitive feasibility studies (DFS) at Mandilla.
The placement price of A$0.095 per share represents a 9.1% discount to the five-day volume-weighted average price (VWAP) and a 5.0% discount to the 30-day VWAP, up to and including September 20, 2024.
The company will issue around 263 million new fully paid shares in total, with Tranche 1 raising A$21 million and Tranche 2, subject to shareholder approval, set to raise A$4 million.
Development activities will be ramped up at Mandilla and Feysville, where Astral has outlined consolidated mineral resources of 1.38 million ounces of gold.
The funds will enable Astral to accelerate exploration and drilling, update mineral resource estimates and complete technical work for the PFS and DFS at Mandilla.
The placement also saw the participation of Astral’s directors, who subscribed for 789,474 shares, subject to shareholder approval at the company’s upcoming Annual General Meeting on November 20.
Euroz Hartleys Limited and Canaccord Genuity (TSX:CF, LSE:CF) acted as Joint Lead Managers for the placement, with Cumulus Wealth Pty Ltd serving as Co-Lead.
Strong investor support shown
Astral managing director Marc Ducler said: “We are delighted with the strong support shown by both new and existing investors in the placement.
“The calibre of new investors we were able to attract and the quantum of funds we were able to raise is testament to the quality of the Mandilla Gold Project as one of Australia’s best near-term gold development stories.
“Proceeds from the placement will enable Astral to accelerate exploration and evaluation activities at both Mandilla and Feysville in order to unlock the genuine potential of these projects.
“Furthermore, the Placement will see Astral funded through to completion of the Mandilla DFS.
“On behalf of the Astral board and management, I would like to extend our appreciation to our new shareholders and thank current shareholders for their ongoing support.”