PERTH (miningweekly.com) – ASX-listed Signature Metals would raise up to A$5-million through a share placement, the company said on Tuesday.

Signature would place up to 250-million shares, at A$0,02 a share.

The placement would be issued in two tranches, the first of which would see 140-million shares placed immediately under the company’s existing capacity. The issue of the second tranche of 110-million shares would be conditional upon shareholder approval.

The funds raised would be used to immediately start the recommissioning of the carbon-in-leach plant and its associated infrastructure, and to move the Kanongo gold project, in Ghana, into production.

This would allow the company to move towards generating a cash flow, and to take advantage of the current high spot gold price.

Funds would also be used to significantly advance the work programmes to confirm the exploration target of between 1,5-million and 2,5-million ounces of gold.

Signature said that should the second placement be unsuccessful, thus raising only A$2,8-million, the company would require additional funding to expand the processing options at Konongo and to fund additional exploration and mining studies.

Signature was aiming to develop the Konongo gold project into a 100 000-oz/y project.

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