Austral Gold raises A$8.45 million to accelerate exploration in Chile and Argentina

Austral Gold has secured A$8.456 million through a strategic share placement to fund exploration in Chile and Argentina and expand processing capacity at its Guanaco and Casposo operations.

Austral Gold has secured A$8.456 million in fresh capital through a strategic share placement with Australian sophisticated and institutional investors, strengthening its funding position to accelerate exploration programs and expand operations in Chile and Argentina.

The placement was executed in a single tranche at A$0.18 per share, with 46,977,778 new shares to be issued under the company’s existing placement capacity on the Australian Securities Exchange (ASX).

The transaction was managed by Aitken Mount Capital Partners, which acted as the sole lead manager and bookrunner for the capital raise.

Funding to support exploration and plant upgrades

According to the company, the proceeds will primarily be used to accelerate exploration and development programs at Austral Gold’s mining clusters in South America, particularly the Guanaco operation in Chile and the Casposo complex in Argentina.

Part of the funding will also support capital expenditures aimed at expanding processing capacity at the Casposo plant. Planned investments include the acquisition and construction of equipment to process tailings and improvements to milling capacity.

In addition, the company plans to increase agitation leaching capacity at the Guanaco mine complex through the installation of a second filter press, a move intended to improve processing efficiency and support future production growth.

Strengthening Austral Gold’s investor base

Austral Gold’s Non-Executive Chair Eduardo Elsztain said the placement will help broaden the company’s shareholder base while supporting its long-term growth strategy across the Americas.

“We are pleased to partner with Aitken Mount Capital Partners on this placement and introduce new Australian investors to the company’s share register,” Elsztain said.

The funds raised will also be allocated to working capital and operational costs associated with the capital raise.

Focus on growth across producing assets

Austral Gold is an established gold and silver producer with operations and exploration projects across the Americas, including the Guanaco/Amancaya mine complex in Chile and the Casposo/Manantiales complex in Argentina.

The latest capital injection is expected to support the company’s broader strategy of expanding production, advancing exploration targets near existing infrastructure, and improving operational efficiency across its mining portfolio.

As global gold prices remain elevated and exploration activity intensifies across the region, Austral Gold aims to leverage its producing assets and infrastructure to unlock new resources and strengthen its position in the Latin American precious metals sector.