Ausgold completes $25m placement

Gold and copper explorer Ausgold has announced completion of a $25 million placement at $1.35 per share to major offshore institutions.

The funds raised will be used primarily in funding the company's 100,000 metre drilling program at its Katanning gold discovery and for regional exploration at the Greater Boddington South project.

Ausgold CEO Benjamin Bell said it was a noteworthy achievement to successfully complete a fund raising of this size in the difficult market conditions of late.

"The success of the raising speaks volumes of the potential of the Southwest Yilgarn, in particular Katanning where we plan to spend $15 million in the next 12 months to continue with our drill out of the various prospects located along our two 18 kilometre corridors of mineralisation," Mr Bell said.

In addition to the Katanning gold discovery, the greater Boddington South Exploration Project covers an area of 6,000sqkm and is host to multiple targets which Ausgold said merit further exploration.

Five million dollars out of the $25 million is budgeted for exploration in this area.