Astral Resources (ASX:AAR) secured firm commitments to raise approximately $25 million through a two-tranche share placement targeting institutional, professional, and sophisticated investors at 9.5 cents per share.
The funds will be used to accelerate exploration and evaluation activities at the Mandilla and Feysville Gold Projects in Western Australia.
The placement was met with strong demand, with the issue price representing a 9.1% discount to the five-day volume-weighted average price and a 5.0% discount to the 30-day VWAP up to Sept. 20.
The company stated that Tranche 1 of the placement has already raised approximately $21 million, while Tranche 2, which remains subject to shareholder approval, is set to raise the remaining $4 million.
Marc Ducler, Managing Director of Astral Resources, said: “We are delighted with the strong support shown by both new and existing investors in the placement."
Proceeds from this placement will ensure that Astral Resources is fully funded through to the final investment decision, including the completion of critical pre-feasibility and definitive feasibility studies at the Mandilla Gold Project, which has delineated consolidated mineral resources of 1.38 million ounces of gold.
Euroz Hartleys (ASX:EZL) and Canaccord Genuity acted as joint lead managers for the placement, with Cumulus Wealth serving as co-lead manager.
The funds will be utilised for various technical studies, drilling activities, and ongoing mineral resource estimate updates, in addition to general working capital purposes.