Asara Resources (ASX:AS1) has solicited $60 million of funding from institutional investors for its Kada Gold Project in eastern Guinea.
Existing and new tier-one international and domestic institutional shareholders have given a “firm commitment” to purchase up to 480,000,000 ordinary shares at $0.125 per share.
The issue price is touted as a 3.8% discount to the company’s $0.13 traded price from 5 May 2026. It is also a 5.4% discount when compared to the 15-day volume-weighted average price of $0.132 per share.
The first tranche, which is expected to raise $50 million, will be settled on 14 May, with new shares allotted on 15 May.
The second tranche will raise the remaining $10 million, subject to shareholder approval at an extraordinary general meeting in late June.
The placement is hoped to raise funds for infill, definition, and mine design geotechnical drilling to grow the current 923-kilo-ounce mineral resource estimate.
The money will also cover the costs of technical and environmental studies, reconnaissance exploration to identify satellite deposits, mine site infrastructure construction, corporate costs, general working capital, and capital raising.
“This placement significantly strengthens our shareholder base with long-term, supportive investors and provides a strong financial platform from which Asara can aggressively fast-track exploration at Kada toward development and production readiness,” Managing Director and CEO Matthew Sharples says.
“Importantly, the funding will also support expansion of our land position and broader exploration footprint, as we work to grow the Kada project into a tier-one gold development asset.”
Canaccord Genuity and Argonaut Securities acted as joint lead managers and bookrunners, with Tamesis Partners LLP acting as co-lead manager.
Asara Resources is a gold explorer and producer with assets mainly in Africa.
Write to Richard Szabo at Mining.com.au
Images: Asara Resources
