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- Firm commitments of $60 million received
- Strong demand from existing, international and domestic institutional investors
- Company’s shareholder base strengthened
- Proceeds to accelerate exploration program at Kada
Asara Resources (ASX: AS1) has received firm commitments for an institutional placement to raise $60 million to support its Guinea gold ambitions.
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Featuring strong demand from existing and new tier-one international and domestic institutional investors the funds will support exploration of the Kada gold project in Guinea.
MD and CEO, Matthew Sharple said Asara is now well placed to accelerate exploration at Kada to advance resource development, regional exploration activities and technical studies.
“We are delighted with the outstanding outcome of the placement, which was supported by overwhelming demand and resulted in the introduction of a number of high-calibre institutional investors to our share register,” Mr Sharple said.
“This placement significantly strengthens our shareholder base with long-term, supportive investors and provides a strong financial platform from which Asara can aggressively fast-track exploration at Kada toward development and production readiness.
“Importantly, the funding will also support expansion of our land position and broader exploration footprint as we work to grow the Kada project into a tier one gold development asset.”
The proceeds of the placement will help fund resource extension and infill drilling and resource definition drilling to grow the current 923,000 ounce mineral resource estimate.
The company is also planning for regional drilling across the broader project area, mine design geotechnical drilling and reconnaissance exploration to identify satellite deposits.
Earlier this month Asara named Mr Sharples as MD alongside his role as CEO.
Chairman, Jeff Quartermaine, said the Asara board believes the appointment reflects the importance of strong executive leadership as the company accelerates its exploration strategy at Kada.
AS1 is up 14.8% to 15.5¢. Mkt cap $216.8M.
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