AuStar Gold Limited has announced a capital raising of A$5.5m which will fund the development and further exploration at the company’s Morning Star and Rose of Denmark gold mines, located in Victoria.
The capital raised was strongly supported by investors and the company is ‘extremely pleased’ with the level of interest shown in its assets and strategy.
“This is a transformational capital raising for the company, which will enable AuStar Gold to accelerate its immediate trial mining activities, intended to both prove concept as well as deliver economic gold production outcomes to the company,” commented AuStar’s Gold Chief Executive Officer, Mr Tom de Vries.
With trial mining underway at Rose of Denmark and successful drilling and face sampling results resulting from Morning Star, Mr de Vries said he is ‘confident’ that grade reconciliation work over the next several weeks, in line with continuing production, will demonstrate the effectiveness of AuStar’s development strategy.
“The AuStar team has worked both hard and effectively over the last several months, with successful recommissioning of the company’s production facility, high recovery factors and drilling success all being achieved in a short space of time and against the backdrop of sound environmental and health and safety outcomes,” he said.
The company’s strengthened balance sheet is capable of supporting an accelerated program of exploration, both at the key mining projects and in the broader regional gold trend (an area which in AuStar views as containing enormous potential).
AuStar’s Chairman Mr Frank Terranova said the company is now fully focused on delivering on the ‘exceptional potential’ .
“I am looking forward to working with Tom and the team on this delivery, as well as evaluating the attractive growth and corporate opportunities that are apparent, given the company’s enviable financial position and asset base,” he said.
The full announcement and more details on the funding can be found here.