Asara Resources secures US $16M to advance Guinea gold exploration
Asara Resources has secured firm commitments to raise A$25 million (US$16.4 million) through a two-tranche institutional placement of new fully paid ordinary shares to support its ongoing exploration efforts at the Kada gold project in eastern Guinea, West Africa.
The capital raise, involving the issuance of 500 million new shares at A$0.05 each, attracted strong interest from both existing institutional investors and new backers in Australia and overseas. The placement will be conducted in two phases: the first tranche, comprising 275.2 million shares and raising approximately A$13.76 million, is scheduled to settle by 1 August 2025. The second tranche, subject to shareholder approval, will raise the remaining A$11.24 million through the issue of 224.7 million shares.
Growth potential
Asara CEO Matthew Sharples expressed confidence in the company’s strategic direction, stating, “The strong demand from high-quality institutional investors reflects the significant growth potential of the Kada gold project and demonstrates a strong vote of confidence in the Asara team.”
Funds raised will support a comprehensive exploration programme, including resource extension and infill drilling at the Massan site, as well as reverse circulation and auger drilling at the recently acquired Talico and Banan licences. Additional work will include mapping, trenching, and geophysical surveys across the project area.
Capital will also be allocated to upgrades at the exploration camp, general working capital needs, and transaction-related costs. Canaccord Genuity (Australia) and Argonaut Securities are acting as joint lead managers and bookrunners, while Tamesis Partners is serving as co-manager for the placement.
