Auric Raises $6.66 Million via 37 Million Share Placement at 18 Cents
Auric Mining has raised $6.66 million through a strongly supported placement to fund key acquisitions and boost gold production amid record prices.
- Placement of 37 million shares at $0.18 each raising $6.66 million
- Funds to complete acquisition of Burbanks Gold Facility and Lindsay’s Project
- Strong backing from existing shareholders and three new mining funds
- Plans to accelerate gold production starting early 2026
- Cash to support ongoing mining at Munda Gold Mine and exploration
Placement Details and Strategic Intent
Auric Mining Limited (ASX: AWJ) has successfully completed a placement of 37 million new shares at 18 cents each, raising $6.66 million before costs. The capital raise was met with strong support from both existing shareholders and three new mining-focused funds, including the Lowell Resources Fund, signaling confidence in Auric’s growth strategy.
The proceeds are earmarked primarily to finalize the acquisition of the Burbanks Gold Facility and the Lindsay’s Project, which includes the partially mined Parrot Feathers Gold Mine. These acquisitions are pivotal to Auric’s ambition to become an integrated explorer, miner, and processor, giving the company greater control over its production chain.
Accelerating Production Amid Record Gold Prices
Managing Director Mark English highlighted that the placement provides a “springboard” for Auric to ramp up gold production in 2025 and beyond. With gold prices hovering around A$5,200 an ounce, significantly higher than when Auric began mining at Jeffreys Find in mid-2023, the timing could not be better to maximize cash flow.
Beyond acquisitions, the capital will also fund ongoing activities at the Munda Gold Mine, where a Starter Pit is underway, and support increased exploration efforts. Auric’s strategy aims to leverage elevated gold prices to strengthen its financial position and operational footprint in the gold-rich district.
Capital Structure and Market Implications
Post-placement, Auric’s share count will increase to approximately 186 million, with new shares representing just under 20% of the total. The new shares will rank equally with existing shares, maintaining shareholder value alignment. QA Capital Pty Ltd acted as sole bookrunner and lead manager for the placement.
This capital injection not only supports Auric’s near-term production goals but also positions the company to capitalize on future exploration upside and processing capabilities. The acquisition of the Burbanks Gold Facility, in particular, marks a strategic shift toward processing independence, potentially improving margins and operational flexibility.
Looking Ahead
While Auric’s plans are ambitious, the company faces the usual challenges of mining project integration and execution. The timeline to commence mining at Lindsay’s Project as early as Q1 2026 is promising but will require careful management. Investors will be watching closely to see how effectively Auric translates this capital raise into production growth and cash flow generation.
Bottom Line?
Auric’s well-supported capital raise sets the stage for a transformative year, but execution risks remain as it integrates new assets and scales production.
Questions in the middle?
- Will Auric meet its target to start mining at Lindsay’s Project by Q1 2026?
- How will the acquisition of the Burbanks Gold Facility impact Auric’s processing costs and margins?
- What exploration results can investors expect from increased activities at Munda and beyond?
