Asara Resources Ltd. will raise AU$60 million to fast-track exploration programs at its flagship Kada gold project in Guinea.
The company has received firm commitments for a placement of 480 million new shares at a price of 12.5 cents per share.
Asara CEO Matthew Sharples said: “This placement significantly strengthens our shareholder base with long-term, supportive investor 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 1 gold development asset.”
Asara intends to use the AU$60 million to accelerate its activity at Kada. Key priorities include extension and infill drilling to expand the current 923,000-ounce Mineral Resource Estimate and reconnaissance drilling across the broader tenement to identify potential satellite deposits.
The company will also use the increased capital for technical and environmental studies, geotechnical drilling for mine design, and early-stage infrastructure construction.
The raising will be conducted in two tranches. The first tranche of approximately AU$50 million will be completed under the company’s existing ASX placement capacity, with settlement expected on May 14.
The remaining AU$10 million will be subject to shareholder approval at an extraordinary general meeting scheduled for late June.
Asara has a portfolio of advanced minerals projects in Guinea, West Africa and Chile. Guinea, where the Kada gold project is located, is one of the most under-explored countries in West Africa.
Asara owned 51 per cent of the Kada project and has a right to earn a further 24 per cent. However, to secure this additional interest, Asara must fund the preparation for a definitive feasibility study for Kada.
Asara has outlined an indicated and inferred mineral resource estimate of 30.3 million tonnes at 1 grams per tonne of gold for 923,000 ounces, the majority of which is shallow oxide-transitional gold mineralisation. Asara is focused on growing the resource estimate.
