Asara Resources has secured firm commitments to raise A$25m ($16.4m) through an institutional placement of new fully paid ordinary shares to fund its exploration activities at the Kada gold project in eastern Guinea, West Africa.
The placement involves the issuance of 500 million new shares at A$0.05 each. It saw strong support from both existing institutional shareholders and new investors from Australia and internationally.
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The first tranche of the placement will raise approximately A$13.76m through the issuance of 275.2 million new shares and is expected to settle by 1 August 2025.
The second tranche, pending shareholder approval, aims to raise an additional A$11.24m by issuing 224.7 million new shares.
Asara CEO Matthew Sharples said: “We are delighted with the results of the placement and are pleased to welcome new investors to the share register. The strong demand from high-quality institutional investors reflects the significant growth potential of the Kada gold project and demonstrates a strong vote of confidence in the Asara team and our strategy to expand our land package and our systematic and structured exploration programme aimed at significantly growing the current mineral resource at Kada.
“This raising ensures that the company is well positioned for the next 12–18 months of exploration, and I am looking forward to updating the market as exploration at Kada progresses.”
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By GlobalDataProceeds from the placement will be used for exploration activities.
These activities will encompass resource extension and infill drilling at the Massan site, as well as reverse circulation and auger drilling operations at the newly acquired Talico and Banan licences.
Comprehensive mapping, trenching and geophysical surveys are also planned across the entire project area. Additionally, the investment will support enhancements to the exploration camp, cover transaction-related expenses and bolster the company’s general working capital.
Canaccord Genuity (Australia) and Argonaut Securities were joint lead managers and bookrunners, with Tamesis Partners being co-manager for the placement.
