AusQuest Secures A$10M to Accelerate Cangallo Copper-Gold Drilling

AusQuest’s Strategic Capital Raise

AusQuest Limited has successfully secured firm commitments to raise A$10 million through a placement of approximately 213 million new shares priced at A$0.047 each. This capital injection marks a pivotal moment for the company as it seeks to accelerate exploration efforts at its flagship Cangallo Porphyry Copper-Gold Project in Peru.

The placement attracted strong support from both new and existing shareholders, including leading offshore specialist resource institutions. Directors themselves are backing the raise by committing around A$1.1 million, subject to shareholder approval, signaling confidence in the project’s potential.

Expanding the Drilling Campaign

The funds will primarily be allocated to expanding the Stage 3 Reverse Circulation (RC) and diamond drilling program by more than 20,000 metres. This expanded drilling aims to extend known copper and gold mineralisation southwards beyond current coverage, targeting areas where geochemical and geophysical indicators suggest the centre of the porphyry system lies.

Locating this centre is critical, as it is expected to host higher-grade copper mineralisation, which could significantly enhance the project’s economic prospects. The results from the RC drilling will help prioritize deeper diamond drilling, which is now integrated into the Stage 3 program, allowing for a more targeted and efficient exploration approach.

Market Confidence and Next Steps

Euroz Hartleys Limited acted as sole lead manager for the placement, underscoring the deal’s credibility. AusQuest’s Managing Director, Graeme Drew, described the capital raise as an inflection point, enabling the company to unlock the full scale and value of the Cangallo discovery. He expressed gratitude to shareholders for their ongoing support and welcomed new investors as the company embarks on this transformative growth phase.

The placement shares will rank equally with existing shares, with settlement expected by mid-December 2025. The portion of shares allocated to directors awaits shareholder approval at an upcoming general meeting, likely in early 2026.

As AusQuest moves forward, the market will be watching closely for drilling results that could validate the expanded exploration strategy and potentially redefine the project’s resource base.