Small-scale miner raises cash for ambitious plant to mill own ore in ‘28
Small-scale gold producer Auric Mining has issued shares totalling about 19.9% of the company for a cash injection to accelerate its expansion plans.
The Western Australian miner has issued A$6.66 million worth of shares priced at 18c each via a placement, with three new funds signing on, notably ASX-listed Lowell Resources Fund, among a mix of new and existing shareholders.
The funds will allow Auric to complete its combined $6.6 million cash purchase of the suspended Burbanks mill outside Coolgardie and the new Lindsay’s gold project, also in the Eastern Goldfields.
Managing director Mark English said the placement was a “ringing endorsement” of Auric’s strategey to shift from tolling miner to an integrated explorer, miner, and processor.
“The placement provides a springboard for Auric to accelerate gold production in 2025 and beyond. It also provides us with a foot into the world of processing and starting the process to control our own destiny,” he said.
Auric is considering a teardown and rebuild of Burbanks, a 180,000 tonne per annum facility that last operated since 2019, English said Auric could be treating its own ore by early 2028 in a new 500,000tpa facility.
The junior started the quarter with $7.4 million cash to keep up the operational momentum, with English saying it made sense to capitalise on the high gold price by accelerating exploration and maximising cash generation opportunities as quickly as possible.
By the end of 2025, the company hopes to sell 8850oz from Munda phase one and the final parcel of material from Jeffreys Find – a potential $46 million in revenue at spot prices.
In that same window it wants to update resources at the Parrot Feathers pit within Lindsay’s and start mining, advance studies on the plan for Burbanks, and start drilling at Lindsay’s, Loded Dog, and Spargoville.
Exploration is budgeted at $1.7 million.
The aim is to build resources to 500,000oz by December 2028.
Auric joins Lowell’s other gold investments, including WA-focused miner Ramelius Resources, and advanced production hopefuls Astral Resources, Medallion Metals and Saturn Metals.
Auric shares were up 13% this morning to 22c, capitalising the company at $33 million.
Auric has traded between 16-41c over the past year.
Lowell was valued at $56 million today based on $1.34 per share.
