Aguia strikes $4 million entitlement issue to fund Colombia gold exploration

Aguia Resources (ASX: AGR) seeks to raise $4 million through a one-for-10 entitlement issue to expand drilling and development at its Santa Barbara Gold Project in Colombia.

Aguia Resources (ASX: AGR) has launched a one-for-10 entitlement issue to raise up to $4 million, with proceeds directed toward advancing exploration and development at its Santa Barbara Gold Project in Colombia.

Entitlement structure and investor terms

Under the offer, shareholders will be able to purchase new shares at $0.027 each, with one free attaching option for every share subscribed. Each option will be exercisable at $0.035 and valid for a two-year period, giving investors additional upside exposure as the company expands its gold operations.

Executive Chairman Warwick Grigor said the board is “encouraged” by recent drilling and sampling results that confirm the vertical extension of the mesothermal gold system at Santa Barbara.

“The company is now proceeding to plan the next stage of development to open up workings on the next level down, duplicating the number of headings and stopes to better access the gold beneath the existing workings,” Grigor explained.

Shareholder participation and strong gold backdrop

Grigor highlighted that the offer marks the first opportunity in almost two years for shareholders to participate in a pro-rata entitlement issue, aligning with Aguia’s strategy to strengthen its capital base amid robust market conditions for gold.

“The Santa Barbara Gold Project has been recommissioned and the company is now ready to expand,” he said, noting that the gold price remains elevated, trading at US$3,834 ($5,830) per ounce on September 30, a 1.75% intraday increase.

Advancing gold and phosphate assets in South America

Aguia Resources is an Australian-listed explorer with a portfolio spanning gold and phosphate projects across Brazil and Colombia. The Santa Barbara Gold Project, located in the Quinchía district of Colombia’s Risaralda Department, is the company’s key focus as it transitions from exploration to production readiness.

The funds raised through the entitlement issue will primarily support development drilling, underground expansion, and working capital to accelerate progress at Santa Barbara during the next phase of exploration.