Aureka’s $3M Placement Fuels 19% Resource Growth and New Discovery
Aureka Limited has raised $3 million through a share placement to accelerate exploration and secure land access at its key gold projects in Victoria, signalling strong investor confidence in its growth strategy.
- Raised $3 million via share placement at $0.13 per share
- Funds to accelerate drilling with two diamond rigs at Irvine and St Arnaud projects
- Recent 19% increase in JORC Resources at St Arnaud
- New mineralisation zone discovered on western flank of Irvine Basalt
- Strategic land acquisitions to secure permanent access and reduce exploration costs
Capital Raise Endorses Strategy
Aureka Limited (ASX, AKA) has successfully completed a $3 million share placement priced at $0.13 per share, attracting both new and existing wholesale investors. This placement, conducted at a slight premium to recent trading prices, underscores robust market support for Aureka’s ongoing exploration and development strategy in Victoria’s goldfields.
Managing Director James Gurry highlighted the unusual strength of equity support in the current market environment, viewing it as a clear endorsement of the company’s approach to ramp up drilling activities and secure long-term land access around its flagship Irvine Project.
Accelerated Exploration and Resource Growth
The capital injection will fund accelerated diamond drilling programs at both the Irvine and St Arnaud projects, with two rigs now operational. This comes on the back of a recent 19% increase in Aureka’s global JORC Resources at St Arnaud, lifting inferred resources from 304,000 ounces to over 360,000 ounces of gold.
At Irvine, drilling has already revealed encouraging mineralisation in a previously unexplored zone on the western flank of the basalt dome, expanding the potential resource footprint beyond the established eastern side. Assay results are pending, but this discovery adds a new dimension to the project’s growth prospects.
Strategic Land Acquisitions Bolster Project Control
Beyond exploration, Aureka has invested $2.2 million in acquiring 97 hectares of land around the Irvine Project. This move secures permanent land access, a critical factor for uninterrupted exploration and future development. The land purchase reduces operational risks, lowers exploration costs, and provides flexibility for infrastructure placement.
The company plans to lease the land to local agricultural operators in the interim, maintaining existing land use while advancing its exploration agenda. Discussions with Commonwealth Bank of Australia regarding mortgage arrangements supported by lease income are ongoing, reflecting prudent financial management.
Looking Ahead
With gold prices near record highs, Aureka’s strategy to combine resource growth through drilling with strategic land control positions it well to unlock significant value from its portfolio. The company aims to update its resource estimates later this year, potentially setting the stage for further market interest and project advancement.
Bottom Line?
Aureka’s capital raise and exploration momentum set the stage for a pivotal year in unlocking Victoria’s gold potential.
Questions in the middle?
- What will the assay results from the new western flank drilling reveal about resource expansion?
- How will mortgage arrangements with CBA impact Aureka’s financial flexibility?
- Can Aureka’s land acquisition strategy accelerate permitting and future development timelines?
