Private Placement - AuStar Gold Limited (ASX:AUL)

AuStar Gold Limited (ASX:AUL) is an exciting gold exploration, mining and production company with a portfolio of historical, near term development and current assets based around the Morning Star Gold mine.

Barclay Pearce Capital is acting as Lead Manager to AuStar Gold who is seeking to raise a minimum of $2,000,000.10 via the issue of 6,666,667 shares at $0.30 per share.

UPDATE: Due to oversubscriptions, this offer is now closed and we are no longer accepting bids.

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About AuStar Gold

AuStar Gold Limited (ASX: AUL) is an exciting gold exploration, mining and production company with a portfolio of historical, near term development and current assets based around the Morning Star Gold mine located approximately 120 km east of Melbourne in the Walhalla to Woods Point Goldfield.

 

The company is focused on the mining and production of its flagship Morning Star gold mine that has historically produced over 830k Oz of gold as well as the exploration of its significant and mineralised landholding. AuStar owns and operates its own milling plant on-site at the Morning Star mine in Woods Point, Victoria.

 

Additionally, AuStar has 670 km2 of exploration tenements covering the Walhalla to Woods Point dyke swarm with historic high-grade production totalling in excess of 6,000,000 Oz of gold.

 

Offer Details:

  • A minimum of A$2,000,000.10 via the issue of 6,666,667 ordinary shares at $0.30 per new fully paid ordinary share.

  • Market capitalisation of $18,767,088.50

  • The Company reserves the right to accept over-subscriptions at its discretion.

  • The Issue Price represents:

    • 13.04% discount to the last traded price of $0.345 on (19/04/2021)

    • 14.04% discount to the 15 day VWAP of $0.3490

    • 14.21% discount to the 30 day VWAP of $0.3497

    • 36.95% discount to the theoretical takeover price from White Rock Minerals Ltd (ASX: WRM) of $0.476

Investment Highlights:

  • Significant potential for further growth of AUL’s tenement portfolio through regional exploration:

    • AUL, through exploration, expects to unlock new opportunities in 2021 from its uniquely comprehensive regional tenement portfolio.
    • Geological similarities exist with the Costerfield Mineralogical Domain including the Fosterville Goldfield.
    • 36 targets identified with 8 targets nominated as high priority based upon available geochemical information.
    • 2 of the 8 high priority targets are on existing granted Mining Leases.
  • Working towards sustainable, cost-effective production at Morning Star:
    • Pursuing increased mining and gold processing efficiencies through targeted planning and capital investment.
    • Currently mining at the Morning Star Mine from the McNally Reef area - historically high grades.
    • Progress in-mine exploration to provide numerous high-grade zones to expand development opportunities. identification of additional cost-effective processing enhancements.
    • AuStar has invested in developing its own diamond drilling competency and owns its own underground rigs.
    • AUL has entered into a concentrate sales agreement with MCC Non-Ferrous Trading for the sale of the Company’s high-grade concentrate product.

 

Merger with White Rock:

*ASX Announcement Released 03/032/2021

AUL recently announced that it was to be acquired by White Rock Minerals Limited (ASX: WRM) via a scheme of arrangement. WRM is a mineral resources exploration and development company based in Ballarat with a world-class portfolio of assets. The transaction is an all-share transaction and the current pricing provides that AUL shareholders will receive 0.78 White Rock shares for every AuStar Gold share held.

The Merged company will move White Rock into the league of gold producers and secures a large (~670km2) under-explored land package with historic high-grade gold production in the highly prospective Victorian goldfields. There is no guarantee that the takeover will proceed as it is subject to a number of conditions yet to be finalised.

 

This private placement is exclusive to s708 investors only.