Perth-based explorer Astral Resources has raised A$65-million in a placement to accelerate work across its Kalgoorlie-region gold portfolio and underpin a large portion of the equity funding for the Mandilla gold project.

The two-tranche placement will see the company issue about 325-million new shares at A$0.20 apiece, representing a 9.1% discount to Astral’s last traded price and a 12.8% discount to the five-day volume-weighted average price.

Astral said the offer was significantly oversubscribed, drawing demand from both existing shareholders and new institutional investors in Australia and overseas.

Proceeds will be directed toward advancing exploration and evaluation at the Mandilla, Feysville and Spargoville projects, where Astral has outlined a combined mineral resource of 1.76-million ounces and reserves at Mandilla of 1.08-million ounces. The funds will also support completion of a definitive feasibility study (DFS) for Mandilla, due in the June 2026 quarter, and allow the company to move ahead with early infrastructure works and long-lead procurement.

Astral noted that, together with its existing cash balance and potential revenue from a proposed early-mining opportunity at the Think Big deposit, the placement will support a significant portion of the equity required for Mandilla’s development, subject to a final investment decision.

“As we close in on the delivery of the Mandilla DFS and move towards a final investment decision, we are delighted with the strong support shown by high-calibre investors, both new and existing, in this placement,” said MD Marc Ducler. 

He added that the calibre of the participants and the size of the raising reflected the “outstanding credentials” of Mandilla, which he described as one of Australia’s most compelling near-term gold development opportunities.

Ducler said the raising leaves Astral in a strong position to progress financing discussions with domestic and international lenders. “The completion of this placement puts Astral in a strong position to progress project financing discussions with an array of domestic and international banks and positions the company to rapidly progress to a final investment decision once the Mandilla DFS is complete,” he said.

He thanked both new and existing shareholders for their backing “as we seek to become the next Kalgoorlie gold producer”.