Ausgold’s A$80m Placement Priced at A$0.80 per Share to Fund Katanning

Capital Raise to Propel Katanning Gold Project

Ausgold Limited (ASX – AUC) has announced a significant capital raising effort, securing A$80 million through a fully underwritten placement priced at A$0.80 per share. This move is designed to accelerate the development of the Katanning Gold Project (KGP) in Western Australia, a venture that the company positions as a stepping stone toward becoming a mid-tier gold producer.

The placement is structured in two tranches – an unconditional first tranche raising A$50 million and a second tranche of A$30 million contingent on shareholder approval at an Extraordinary General Meeting scheduled for January 2026. Alongside this, Ausgold is offering a Share Purchase Plan (SPP) to eligible shareholders to raise up to an additional A$10 million at the same issue price, providing a cost-effective opportunity for existing investors to increase their holdings.

Strategic Use of Funds

The proceeds from the placement, combined with the company’s existing cash reserves of approximately A$25.4 million, will be directed towards several critical areas. These include the construction of a workforce accommodation facility, land acquisition payments, advancing regional exploration, and general working capital. Notably, the funds will also support the procurement of long-lead items and the tendering of material contracts, essential steps as Ausgold prepares for a final investment decision (FID) targeted for mid-2026.

Executive Chairman John Dorward highlighted the importance of recent milestones, including the completion of the Definitive Feasibility Study in June 2025 and recent land acquisitions. He emphasized that the capital raise positions Ausgold to accelerate development activities and continue an extensive drilling program aimed at expanding the project’s resource base.

Market and Shareholder Considerations

The issue price of A$0.80 per share represents a 9.1% discount to the last closing price and a 3.2% discount to the five-day volume weighted average price, reflecting a balance between raising capital efficiently and maintaining shareholder value. The underwriting agreement includes conditions related to market stability, such as limits on declines in the ASX 200 Index and the Australian dollar gold price, underscoring the sensitivity of the placement to broader market conditions.

Shareholders will have the opportunity to participate in the SPP, which allows investments up to A$30,000 without brokerage fees, subject to scale-back if demand exceeds the A$10 million cap. The timetable anticipates the SPP closing in mid-December, with the EGM for tranche two approval set for mid-January 2026.

Looking Ahead

Ausgold’s capital raising marks a pivotal step in advancing the Katanning Gold Project towards production. The company’s focus on securing key infrastructure, expanding exploration, and finalizing permitting and contracts signals a methodical approach to de-risking the project ahead of the FID. Investors will be watching closely for updates on drilling results and the outcome of the shareholder vote, which will determine the full funding of the project’s next phase.