Aureka (ASX:AKA) is set to transition into a producer after its previously reported share purchase plan (SPP) raised $1.6 million, exceeding its target.
“To seamlessly transition from explorer to producer with a large platform of growth ahead of us with such strong support of our investors is a vote of confidence in the value-creation strategy we have outlined,” Managing Director James Gurry says.
In early September, Aureka secured commitment letters for a two-tranche placement, raising $5.65 million, via the issuance of shares at $0.12 per share. In conjunction, a SPP under the same issue price was carried out to raise $1.5 million.
The funds will be used to support the acquisition of the Fiddlers Creek gold and silver underground mine and Wedderburn gold processing mill in Victoria. Funds will also be used towards the company’s ongoing exploration activity.
Under the binding agreement with High Grade Holdings, Aureka will pay $2.5 million in cash and issue $6.4 million in shares. Up to $2 million in contingent performance payments may also become payable if production and project milestones are achieved.
Fiddlers Creek restarted production during 2025 as a smaller-scale operation with near-mine and regional growth potential. The Wedderburn processing mill is one of a limited number of gold mills in Victoria and is currently processing ore from Fiddlers Creek.
Aureka is an Australian gold explorer with a portfolio of advanced-stage projects across Victoria, including the St Arnaud and Jubilee gold projects.
Write to Aaliyah Rogan at Mining.com.au
Main image: Aureka
