CAPITAL MARKETS

Auteco raises at a premium

Company ready to start exploring for high-grade gold in Canada

 Auteco's Pickle Crow project in Ontario

Auteco's Pickle Crow project in Ontario

The company will place 145.7 million shares to new and existing domestic and offshore institutions and sophisticated investors.

The placement was conducted at 3.5c per share, a 2.4% premium to the 10-day volume-weighted average price.

Canaccord Genuity was lead manager and bookrunner.

The placement will be conducted in two tranches, with the second requiring shareholder approval.

Directors will also seek approval to subscribe for $225,000 worth of shares.

Auteco had $1.15 million cash at the end of March after raising $1.2 million at 0.8c in January, with 40% taken up by directors.

Non-executive director Steve Parsons has spent $130,255 buying Auteco shares on-market in April alone.

Executive chairman Ray Shorrocks bought $13,000 worth of shares on-market earlier this month.

Shorrocks said the strong interest shown by leading institutional investors in the placement was a huge endorsement of the Pickle Crow project and the current gold market environment.

"The proceeds raised enable us to begin our maiden drilling program at Pickle Crow, where we will initially be focusing on high-grade gold targets," he said.

"We look forward to releasing these assay results as received. In addition, we are expecting to release a JORC 2012 compliant resource during this calendar quarter."

Shorrocks was chairman of Bellevue Gold until last year. Parsons is managing director of Bellevue.

Bellevue chief geologist Sam Brooks is Auteco's technical director, while chief financial officer Michael Naylor is also on the board of Auteco as a non-executive director.

Auteco's maiden program will comprise 5000m of drilling to test high-potential walk-up targets.

The company agreed to acquire up to 80% of the project from First Gold Mining in January.

The project produced 1.5 million ounces at 16 grams per tonne gold until it closed in 1966, and has very little exploration since.

Shares in Auteco rose 7.5% to 4.3c, close to the 52-week high of 4.6c reached in February.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.