Katanning Gold Mine update: AusGold increases share amount to provide $12 million in funding for development

AusGold Limited has increased its share amount by 266,666,667 fully paid ordinary shares to raise $12 million for the expansion and development of the Katanning Gold Project, which will see some 150 full-time jobs upon completion. The move discounts AusGold’s share price to 4.5¢, which will be issued on April 13, hoping to attract more investors. The $12m will go towards continuing resource expansion drilling, regional exploration, and property acquisitions. The share increase comes after holding a community and business engagement meeting with the locals of Katanning and surrounds. The meeting was an opportunity to build community engagement and relations with questions raised about accommodation for incoming workers and impacts on local native animal populations such as the Carnaby Black Cockatoo. AusGold certainly sees the potential of the mine, foreseeing longevity to the project. “Recent high-grade drilling results have shown that the Katanning Gold Project is capable of supporting a materially larger operation, our strong view that the KPG is able to support a long term mine life of gold production supported by a scoping study,” AusGold managing director Matthew Greentree said. While the opening of the mine and production seems to be at least a couple of years away, Mr Greentree views the Katanning Gold Project with optimism. “Katanning has a significant scale potential as the largest undeveloped free milling open cut gold mining project in Western Australia,” Mr Greentree said.