Ausgold Limited (ASX:AUC) has announced plans to raise $38 million via a two-tranche placement, in order to accelerate development and exploration activities at its 3.04 million ounce Katanning gold project. Under the placement, the Perth-based junior told the market it will issue approximately 1.26 billion shares, at an issue price of 3 cents per share. This price represents a 14.3% discount in relation to Ausgold's closing price of 3.5 cents per share on May 31 and a 7.68% discount to its 20-day volume weighted average price.

Proceeds from the placement will be allocated towards additional works, which will run through to both the final investment decision and definitive feasibility study.