AusQuest Raises AU$7.5 Million to Accelerate Drilling at Cangallo

Highlights:

• AU$7.5 Million Raised – AusQuest Limited (ASX: AQD) secured firm commitments for a placement to accelerate drilling at the Cangallo Porphyry Copper-Gold Project.
• Exploration Plans – Stage 2 RC drilling set to begin in April 2025, with deeper diamond drilling planned based on results.
• Director Participation – Directors contributing AU$1.2 million, with shareholder approval pending; shares issued at a 16.3% discount to the last closing price.

Capital Raising to Fund Exploration Efforts

AusQuest Limited (ASX: AQD) has secured firm commitments to raise AU$7.5 million through a placement of approximately 208.3 million new fully paid ordinary shares at an issue price of AU$0.036 per share. At the time of writing, this placement has received strong backing from institutional, sophisticated, and professional investors.

The funds will be primarily allocated to accelerating exploration at the Cangallo Porphyry Copper-Gold Project in Peru. Additionally, proceeds will be used for initial drilling at the Lantana and Playa Kali Copper Projects, which are located along strike from Cangallo, as well as for general working capital.

Planned Drilling and Exploration Strategy

AusQuest is preparing for Stage 2 Reverse Circulation (RC) drilling, set to begin in April 2025, to further assess the copper-gold mineralization at Cangallo. A diamond drilling program will follow, targeting deeper mineralization beyond 300 meters once Stage 2 results are available.

Euroz Hartleys Limited acted as the Sole Lead Manager for the placement.

Directors’ Participation and Market Impact

Company directors will contribute approximately AU$1.2 million, subject to shareholder approval. Of the total placement, 175.6 million shares will be issued under the company’s existing ASX Listing Rule 7.1 and 7.1A capacities, with settlement expected by February 27, 2025. The remaining 32.8 million shares will be allocated to directors, pending approval in early April.

The issue price represents a 16.3% discount to AusQuest’s last closing price of AU$0.043 and a 23.4% discount to its 15-day volume-weighted average price (VWAP). Investors remain optimistic about the company’s strengthened balance sheet and upcoming exploration activities

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