Astral Resources

Astral Funded through to Final Investment Decision Following Strongly Supported $25M Placement

Proceeds to accelerate exploration and evaluation activities at Mandilla and Feysville, including completion of Pre-Feasibility and Definitive Feasibility Studies

Astral Resources NL (ASX: AAR) (Astral or the Company) is pleased to advise that it has secured firm commitments to raise approximately $25.0 million (before costs) via a two-tranche placement for the issue of approximately 263 million new fully paid shares (New Shares) at an offer price of $0.095 per New Share (Placement). Tranche 1 of the Placement has raised approximately $21.0 million whilst Tranche 2 of the Placement, which includes the issue of New Shares subject to shareholder approval, is set to raise approximately $4.0 million.


Highlights

  • Firm commitments received to raise approximately $25.0 million (before costs) in a two-tranche share placement to institutional, professional and sophisticated investors at $0.095 per share.
  • Issue price represents a discount of 9.1% to the 5-day VWAP up to and including 20 September 2024 and a 5.0% discount to the 30-day VWAP up to and including 20 September 2024.
  • The Placement was well supported with strong demand from existing and new domestic and offshore institutional investors.
  • Astral is now fully funded to FID including acceleration of exploration activities at the Mandilla and Feysville Gold Projects, and completion of the Mandilla Pre-Feasibility Study and Definitive Feasibility Study.

Following completion of the Placement, Astral will be fully funded to accelerate exploration and evaluation activities at its Mandilla and Feysville Gold Projects, south of Kalgoorlie in Western Australia, where the Company has to date delineated consolidated Mineral Resources of 1.38Moz1,2.

Proceeds of the Placement ensure that Astral is funded through to completion of the Mandilla Pre- Feasibility Study (PFS) and Definitive Feasibility Study (DFS).

Commenting on the Placement, Astral’s Managing Director, Marc Ducler, said:

“We are delighted with the strong support shown by both new and existing investors in the Placement.

“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.

“Proceeds from the Placement will enable Astral to accelerate exploration and evaluation activities at both Mandilla and Feysville in order to unlock the genuine potential of these projects.

“Furthermore, the Placement will see Astral funded through to completion of the Mandilla DFS.

“On behalf of the Astral Board and management, I would like to extend our appreciation to our new shareholders and thank current shareholders for their ongoing support.”

Euroz Hartleys Limited and Canaccord Genuity acted as Joint Lead Managers to the Placement, with Cumulus Wealth Pty Ltd acting as Co-Lead.

Use of Funds

Together with the Company’s current cash reserves, the proceeds of the Placement will be used to accelerate the exploration and evaluation of the Company’s 100%-owned Mandilla and Feysville Gold Projects.

Specific activities will include:

  • Various study and technical work streams relating to the Mandilla PFS and DFS;
  • Exploration and infill drilling at both Mandilla and Feysville;
  • Ongoing Mineral Resource Estimate updates for both Mandilla and Feysville;
  • Exploration and evaluation support and overheads;
  • General working capital purposes; and
  • Costs of the Offer.

Placement Details

Astral has undertaken this two-tranche Placement of new fully paid ordinary shares in the Company to eligible sophisticated, institutional and professional investors to raise approximately $25.0 million (before costs). Approximately 263 million shares are to be issued at $0.095 per share (Placement Shares).

Tranche 1 of the Placement includes the issue of approximately 221 million shares at an issue price of $0.095 per share, utilising the Company’s existing placement capacity under Listing Rule 7.1 and Listing Rule 7.1A (Tranche 1 Placement Shares). A total of 129,113,197 new Tranche 1 Placement Shares will be issued in accordance with ASX Listing Rule 7.1. A total of 91,939,435 new Tranche 1 Placement Shares will be issued in accordance with ASX Listing Rule 7.1A.

Tranche 2 of the Placement involves the issue of approximately 42 million shares at an issue price of $0.095 per share (Tranche 2 Placement Shares). The issue of Tranche 2 Placement Shares is subject to shareholder approval, with the enabling resolution to be put to shareholders at the Company’s AGM to be held on 20 November 2024. Subject to receipt of shareholder approval, a total of 42,105,263 new Tranche 2 Placement Shares will be issued following the AGM.

Additionally, directors of the Company subscribed for 789,474 shares (Director Participation Shares) on the same terms as the Placement Shares. The issue of the Director Participation Shares is subject to shareholder approval, with the enabling resolution also to be put to shareholders at the AGM.


Click here for the full ASX Release

This article includes content from Astral Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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Cautionary Statements

This press release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, statements regarding the completion of the Offering and the timing thereof, and the anticipated use of proceeds of the Offering are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "should" or "would" or occur. Forward-looking statements are based on certain material assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including, but not limited to, that the Company will complete the Offering on the terms disclosed, that the Company will receive all necessary regulatory approvals for the Offering, that the Company will use the proceeds of the Offering as currently anticipated; and assumptions relating to the state of the financial markets for the Company's securities. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the Company may not be able to raise funds under the Offering, as currently anticipated, that the Company may fail to receive any required regulatory approvals for the Offering, that the Company will not use the proceeds of the Offering as anticipated, market volatility, unanticipated costs, changes in applicable regulations, and changes in the Company's business plans. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

SOURCE Quimbaya Gold Inc.

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