Astral Resources Raises A$65M to Accelerate Mandilla Gold Project Development
Astral Resources has successfully raised A$65 million through a strongly supported placement to advance its Mandilla Gold Project and accelerate exploration across its Western Australian gold assets.
- A$65 million placement at A$0.20 per share, oversubscribed
- Funds to accelerate Mandilla DFS and early infrastructure works
- Supports exploration at Mandilla, Feysville, and Spargoville projects
- Placement underpins significant equity funding for Mandilla development
- Second tranche and director participation shares subject to shareholder approval
Strong Institutional Backing for Capital Raise
Astral Resources (ASX, AAR) has announced a successful capital raise of approximately A$65 million through a two-tranche placement priced at A$0.20 per share. The placement was significantly oversubscribed, reflecting strong demand from both existing and new institutional investors domestically and internationally. This robust support underscores confidence in Astral’s flagship Mandilla Gold Project and its broader portfolio in Western Australia.
Funding the Next Phase of Development
The proceeds from the placement will be primarily directed towards accelerating exploration and evaluation activities at the Mandilla, Feysville, and Spargoville gold projects, all located south of Kalgoorlie. A key focus is the completion of the Definitive Feasibility Study (DFS) for Mandilla, scheduled for the June 2026 quarter. Additionally, funds will support early infrastructure works and procurement of long-lead items essential for the project’s development.
Mandilla Project Positioned for Growth
Mandilla boasts a consolidated mineral resource base of 1.76 million ounces of gold and an ore reserve of 1.08 million ounces, positioning it as a significant near-term development opportunity. The capital raise, combined with existing cash reserves and potential early revenue from the Think Big project, is expected to cover a substantial portion of the equity funding required for Mandilla’s development, pending a Final Investment Decision (FID).
Shareholder Approval and Capital Structure
The placement is structured in two tranches, with the first tranche of approximately 316.5 million shares to be issued under existing placement capacity. The second tranche, involving about 7.4 million shares plus director participation shares, awaits shareholder approval at a general meeting scheduled for January 2026. Upon completion, Astral’s share count will increase to approximately 1.8 billion shares, reflecting the company’s growth ambitions.
Looking Ahead
Managing Director Marc Ducler expressed optimism about the company’s trajectory, highlighting the quality of investors attracted and the strong financial position now secured. The capital raise not only accelerates project development but also strengthens Astral’s position in upcoming project financing discussions with banks, setting the stage for a potential transition to production in the near future.
Bottom Line?
Astral’s well-supported placement sets a solid foundation for Mandilla’s development, but shareholder approval and DFS outcomes remain critical next steps.
Questions in the middle?
- Will shareholder approval for the second tranche and director participation shares be secured without delay?
- How will early mining revenue from the Think Big project impact Mandilla’s funding and timeline?
- What are the key risks that could affect the timing or outcome of the Final Investment Decision?
