AusQuest Limited Launches AU$2.6 Million Capital Raise to Advance Projects

Highlights:

• Capital Raise: AusQuest Limited (ASX: AQD) launches a non-renounceable rights offer to raise A$2.6 million to fund copper exploration projects in Peru and explore new opportunities in Australia.
• Entitlement Offer: Eligible shareholders can apply for 2 new shares at A$0.008 per share for every 5 held, with a free attaching option exercisable at A$0.012.
• Key Support: Chrysalis Investments Pty Ltd, the largest shareholder with a 22.24% stake, and Managing Director Graeme Drew, have committed to fully subscribe to their entitlements, signaling strong confidence.

Capital Raise to Fund Key Projects

AusQuest Limited (ASX: AQD) has announced a non-renounceable rights offer to raise up to A$2.6 million (before costs) to fund exploration drilling programs in Peru and to investigate new exploration and acquisition opportunities in Australia. This capital raise will support the company’s efforts to unlock value from its 100% owned copper projects in Peru and help bolster its Australian portfolio.

Entitlement Offer Details

The rights offer allows eligible shareholders to apply for 2 new shares for every 5 shares they hold, priced at A$0.008 per share. In addition, shareholders will receive a free attaching option on a 1-for-2 basis, exercisable at A$0.012, with an expiry date of November 2027. This presents a valuable opportunity for shareholders to increase their exposure to AusQuest's expanding projects.

Strong Support from Major Shareholders

Chrysalis Investments Pty Ltd, the company’s largest shareholder, which holds a 22.24% stake and is controlled by AusQuest’s Non-Executive Director Chris Ellis, has committed to fully subscribing to its entitlement. Managing Director Graeme Drew has also confirmed his participation. Their backing signals strong confidence in the company’s future prospects.

Exploration Focus in Peru and Australia

A significant portion of the funds will be allocated to drilling the Cangallo Porphyry Copper Project in Peru, with operations expected to commence in December 2024. This marks a significant milestone for AusQuest, as the rising global demand for copper is fueled by its essential role in the transition to renewable energy and electrification.

Strategic Alliance and Growth Plans

The company also plans to use the funds to explore new projects in Australia, with a focus on opportunities that align with its strategic alliance partner South32. These funds will also support working capital needs.

At the time of writing, AusQuest’s strategic move places it in a strong position to advance its exploration efforts and deliver potential value to shareholders, as it taps into high-demand copper resources across its global portfolio.

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