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Ausgold (ASX:AUC) to launch capital raise

The Market Online Deal Room
ASX:AUC      MCAP $146.2M
03 August 2020 11:00 (AEDT)

Ausgold (AUC) has entered a trading halt ahead of a capital raise announcement.

The company will remain in a trading halt until the earlier commencement of trading on Wednesday, August 5.

The WA-based gold explorer spent the June quarter focused on exploration programs at its wholly-owned Katanning Gold Project. Katanning is located 40 kilometres from its namesake town in the southwest of Western Australia.

At the end of the quarter, Ausgold held $1,025,000 in cash and cash equivalents.

The company is currently focused on drilling to continue to extend high-grade gold mineralisation at Jinkas South.

So far, drilling at Jinkas South has returned impressive results including; five metres at 13.67g/t gold from 120 metres, including one metre at 65.8g/t gold; and 39 metres at 1.32g/t gold from 96 metres, including eight metres at 4.10g/t gold and one metre at 22.2g/t gold.

A downhole electromagnetic program is underway to identify new electromagnetic drilling targets and further extend high-grade gold mineralisation.

Additional exploration activities are being conducted which may require the company’s upcoming capital raise.

However, reverse circulation drilling along the Jinkas North orebody has been co-funded by a $150,000 grant under the Western Australian Government’s Exploration Incentive Scheme (EIS).

Company shares last traded for 3.5 cents each on July 31.

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