Euroz Hartleys, Cumulus Wealth lead Astral raise

Astral Resources (ASX:AAR) has locked in $7 million from both existing shareholders and new investors via a share placement to advance both its wholly owned Mandilla and Feysville gold projects in Western Australia. 

Euroz Hartleys and Cumulus Wealth were retained as joint lead managers to the placement. 

Astral, which has a $47.58 million market capitalisation, says the funds, together with existing cash reserves, will be used to fund diamond and reverse circulation (RC) drilling, assays, and testwork at both projects. 

The proceeds will also support Mineral Resource Estimate (MRE) updates for the projects, as well as exploration and evaluation support and overheads, the start of the Mandilla Prefeasibility Study (PFS), and general working and capital. 

Under the placement, eligible sophisticated, institutional, and professional investors will be issued a total of 140 million shares at $0.05 each. 

Directors of the company also subscribed for an additional 2.1 million shares at the same price. 

Further, 17 million unquoted options exercisable at $0.075 with an expiration date of 3 years from date of issue will be delivered to the joint lead managers.

Managing Director Marc Ducler says: “We are truly delighted with the strong support received from new and existing investors, particularly given the extremely challenging market environment for gold juniors. 

“The continuing exploration success at the exciting Kamperman prospect at Feysville gives us increasing confidence that Kamperman will become a valuable contributor of high-grade satellite ore feed to the Mandilla Gold Project development. 

“Assay results from a further 15 RC drill holes at Kamperman are expected to be received imminently. 

“With Mandilla firmly established as one of the best free-milling open pit resources in WA’s Goldfields Region and Feysville firming up as a genuine source of high-grade satellite ore-feed, our confidence in our strategy of building Western Australia’s next quality gold mining operation has never been greater.”

As of 31 December 2023, Astral Resources had $1.75 million in cash at hand, according to its latest quarterly report. 

Write to Adam Drought at Mining.com.au 

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.