Asara Resources raises $25M to fast-track exploration at Kada Gold Project

Asara Resources (ASX:AS1) has raised $25 million through a two-tranche institutional placement to accelerate exploration activities at its flagship Kada Gold Project in Guinea.

The capital raising, priced at $0.05 per share, was strongly supported by both existing institutional shareholders and new Australian and international investors.

The proceeds will be used to fast-track an expanded drilling program at Kada, including resource extension and infill drilling at the Massan deposit, as well as initial exploration at the recently granted Talico and Banan licences.

Additional funds will support mapping, trenching, geophysical work, and upgrades to the exploration camp.

CEO Matthew Sharples said the strong response reflects investor confidence in the project's potential and the company's structured approach to growing the current mineral resource.

"This raising ensures that the company is well positioned for the next 12–18 months of exploration," Sharples noted.

The placement comprises 500 million new shares issued at a 7.4% discount to the company’s last traded price of $0.054 on July 23.

The first tranche of approximately $13.76 million will settle on Aug. 1 under existing placement capacity, while the $11.24 million second tranche remains subject to shareholder approval at an extraordinary general meeting scheduled for mid-September.

Canaccord Genuity (Australia) and Argonaut Securities acted as joint lead managers and bookrunners to the placement, with Tamesis Partners as co-manager.