Astral Resources (ASX:AAR) is funded through to a final investment decision thanks to “firm commitments” to raise approximately AU$25 million via a placement of new company shares.
The amount will be secured across two tranches, with Astral set to issue approximately 263 million new fully paid shares at AU$0.095 each. It has already raised AU$21 million via the first tranche.
The second tranche is subject to shareholder approval, and is anticipated to bring in about AU$4 million.
“Proceeds of the placement ensure that Astral is funded through to completion of the Mandilla PreFeasibility Study
(PFS) and Definitive Feasibility Study (DFS),” Astral said in a Wednesday (September 25) press release.
The company specified that the funds will be used along with its current cash reserves to conduct various study and technical work streams related to the PFS and DFS. The proceeds will also go toward exploration, infill drilling and ongoing resource estimate updates for Mandilla, as well as the Feysville project.
“We are delighted with the strong support shown by both new and existing investors in the Placement,” said Astral Managing Director Marc Ducler in a statement from the company.
“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.”
Both Mandilla and Feysville are located south of Kalgoorlie in Western Australia. Astral says that together the assets have consolidated resources of 1.38 million ounces of gold.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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