Austral Gold Converts US$0.6M Notes into Shares

Executive Summary

• Austral Gold converted AUD $919,158 of outstanding convertible notes into 7,789,471 ordinary shares at AUD $0.118 per share.
• The company also agreed to convert accrued interest (AUD $120,959) into an additional 1,025,077 shares, pending TSX Venture Exchange approval, bringing total potential issuance to 8,814,548 shares (~1.42% of outstanding equity).
• No statutory hold period applies to the principal conversion shares in Canada; the interest‑conversion shares will be subject to a hold period.

Key Details

• Principal Conversion: 7,789,471 fully paid ordinary shares issued to one investor under the original private placement announced 10 Oct 2023 and completed 15 Feb 2024.
• Conversion Price: AUD $0.118 per share (≈ US $0.077, CAD $0.108).
• Interest Conversion Agreement: Convert accrued interest of AUD $120,959 (less 10% withholding tax) into 1,025,077 shares at the same price, subject to TSX Venture Exchange acceptance.
• Hold Periods:
• Principal conversion shares – no statutory hold period in Canada (issued >4 months after note issuance).
• Interest conversion shares – subject to Canadian statutory hold period; none under Australian law.
• Dilution Impact: Total potential issuance of 8,814,548 shares represents ~1.42% of Austral Gold’s issued and outstanding ordinary shares.
• Regulatory Capacity: Shares to be issued using existing capacity under ASX Listing Rule 7.1.

Notable Quotes

(No direct quotes were provided in the release.)