Ausgold receives $3m backing from major investors for Katanning gold project

By Colin Hay - May 14, 2024

Ausgold (ASX: AUC) has received a major show of support from a group of international investors for its plans to develop the 3.04 million ounce Katanning gold project (KGP) in Western Australia.

The company’s largest shareholder Dundee Resources and new institutional shareholders Arlington Group Asset Management and nominees of SCP Resource Finance LP (SCP) have come together to provide $3 million in support of the project.

The loan notes provided by the investors will help fund Ausgold and its KGP activities through the completion of an ongoing definitive feasibility study (DFS).

Major gold development

Ausgold managing director Dr Matt Greentree said the KGP will be one of the largest free-milling new open-cut gold projects in Australia.

“We are very pleased to have finalised this financing and welcome the continued support of our major shareholder Dundee Corporation together with existing and new institutional investors,” Dr Greentree said.

“The support of these highly-regarded global investors is a testament to the quality, scale and potential of the Katanning gold project and follows an extensive due diligence process undertaken by the investors.”

Dr Greentree said that, along with supporting the completion of the DFS, the new funds will also help advance key permitting and pre-development activities.

“Importantly, the additional liquidity also allows us to embark on our previously foreshadowed exploration program across the Katanning regional project, where we have identified more than a dozen high-potential targets.”

“This work will commence with drilling at the exciting Duggan and Stanley prospects, where we see a significant opportunity to delineate high-grade resources just 25km from our planned mine and infrastructure.”

High praise

Dundee chief executive officer Jonathan Goodman said KGP and Ausgold have significant upside.

“Ausgold today is where Capricorn was with its Karlawinda gold project circa 2020 except Ausgold’s Katanning project is bigger, higher grade with double the tenure and better infrastructure.”

“We see excellent potential for future development at Katanning.”

Dundee Resources – a global resource investor with more than 30 years’ experience making accretive mining investments – has been Ausgold’s major shareholder since 2020 with a 12.5% interest.

SCP Resource Finance is a leading and independent broker-dealer specialised in the global mining sector.

Established in May 2023, SCP Resource Finance was formed after a management-led buyout of Sprott Capital Partners.