Austral Gold Secures TSXV Nod to Issue Over 1 Million Shares for Debt Interest

TSXV Approval for Share Issuance

Austral Gold Limited (ASX – AGD) has announced that the TSX Venture Exchange has approved the issuance of 1,025,077 fully paid ordinary shares to an investor. This issuance is to settle accrued interest on previously issued convertible notes, following the recent conversion of the principal amount of those notes into shares. The shares are being issued at a conversion price of AUD$0.118 per share, consistent with the earlier principal conversion.

Capital Management in Focus

This share issuance is part of Austral Gold’s ongoing capital management strategy, utilizing equity to repay debt obligations tied to convertible notes. By converting accrued interest into shares rather than cash, the company preserves liquidity while managing its balance sheet. The shares are issued under the company’s existing capacity pursuant to ASX Listing Rule 7.1, which limits the need for additional shareholder approvals.

Regulatory and Market Implications

While the shares will be subject to a four-month statutory hold period under Canadian securities laws, no such restriction applies under Australian regulations. This dual regulatory environment reflects Austral Gold’s cross-border listing status on the ASX, TSXV, and OTCQB markets. Investors should note that the issuance will dilute existing shareholdings, although the impact is moderated by the relatively modest number of shares issued compared to total capital.

Strategic Outlook

Austral Gold continues to build its portfolio of producing and exploration assets across the Americas, underpinning its growth ambitions. The company’s approach to managing convertible notes through share issuance signals a pragmatic balance between growth funding and capital structure optimization. Market watchers will be keen to see how Austral Gold leverages this financial flexibility to advance its projects and deliver shareholder value.