Australasian Gold (ASX:A8G) - Managing Director, Qingtao Zeng
Managing Director, Qingtao Zeng
Source: Australasian Gold
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  • Australasian Gold (A8G) is set to raise $2.5 million through a share placement to fund exploration at its Mt Peake lithium project in the Northern Territory
  • Positively, the placement has attracted the support of two major players in the lithium industry who’ve each subscribed for $1 million as part of the raise
  • Roughly 5.56 million shares will be issued at 45 cents per share to Ruifu and Xingfeng, as well as sophisticated and professional investors
  • The placement is expected to settle on or around October 18
  • Company shares are trading 3.3 per cent higher at 47 cents at 1:25 pm AEDT

Australasian Gold (A8G) has received firm commitments to raise $2.5 million through a share placement.

Roughly 5.56 million shares will be issued at 45 cents per share to sophisticated and professional investors, as well as lithium industry players Shandong Ruifu Lithium Industry and Tangshan Xingfeng which have each subscribed for $1 million as part of the raise.

Managing Director Qingtao Zeng was pleased to have received support from major lithium companies.

“We were delighted to have attracted major industry participants at this early stage of our discovery journey,” Dr Zeng said. “We have an exciting lithium project in an under-explored pegmatite province and we look forward to accelerating our exploration efforts over the coming weeks and months.”

A8G went into a trading halt yesterday for the capital raise but did not disclose how much it would raise or how it would spend the money.

Today, it confirmed the funds would go towards progressing exploration at its Mount Peak lithium project which is located in the Northern Arunta pegmatite province in the Northern Territory.

Specifically, Australasian Gold will use the money for mapping, geochemical sampling, geophysics and future drilling programs, other exploration work at future projects, and for general working capital.

The placement shares are expected to settle on or around October 18.

Company shares were trading 3.3 per cent higher at 47 cents at 1:25 pm AEDT.

A8G by the numbers
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