Aureka (ASX:AKA) is conducting a $3 million placement to fund exploration work at the Irvine and St Arnaud projects in Victoria.
Under the share placement, 23.07 million shares will be issued at $0.13 per share, representing a 5% premium to the 15-day volume weighted average price. The shares are expected to be issued on 13 June 2025.
Managing Director James Gurry says that this raise serves as an endorsement for the company’s strategy to ramp up drilling and conduct long-term derisking activities.
“Such a strong equity placement at this end of the market is unusual and recognises the significant support the company enjoys and the long-term upside in the project portfolio,” he says.
Aureka, which has a market capitalisation of $13.31 million, will use funds to accelerate exploration drilling, with two diamond drill rigs operating at the Irvine and St Arnaud projects.
As Mining.com.au previously reported, Gurry says the company intends to continue drilling with the aim of incorporating the results into a larger gold inventory.
“I can tell you that we’re already well on the way to increasing the size of our inventory, our gold inventory, which is great,” Gurry told this news service.
At Irvine, two of the planned initial three drillholes are completed. Meanwhile at St Arnaud, the first two of the initial four holes are complete around the Comstock area.
The funds will also be used to support the recent land purchases around Irvine, within the Stawell Corridor, as well as general working capital.
Earlier this year, Aureka secured purchase agreements to acquire 97 hectares of land surrounding the Irvine Project.
The company says the deal shows the company’s confidence in the project as among “one of Victoria’s largest undeveloped gold resource projects”.
The Irvine Project, located in the Stawell Corridor, hosts an inferred resource of 304,000 ounces @ 2.43 grams per tonne gold. The St Arnaud Project contains a declared resource of 1.45 million tonnes @ 1.21g/t gold for 56,500 ounces of gold.
Aureka is a gold-focused explorer with a portfolio of early-stage projects in Victoria, Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Aureka
