PERTH (miningweekly.com) – ASX-listed Golden Rim Resources will raise A$3-million through a share placement to fund work at its Kouri gold project, in Burkina Faso.

The company on Monday said that some 116-million fully paid ordinary shares will be placed to institutional and sophisticated investors, priced at 2.6c each, to raise the funds.

The participants in the share placement, which was heavily oversubscribed, will also be offered one free option for every two new shares subscribed for.  The options can be exercised at 4c each, at any time within a 24-month period.

Golden Rim told shareholders that the funds raised will be used for follow-up reverse circulation drilling at the new Red Hill gold discovery, as well as infill drilling on new regional targets, and an expected mineral resource upgrade.

“The success of this capital raising is a testament to the quality of our 100% owned Kouri gold project and we are very grateful for the support received from both existing and new investors,” said Golden Rim MD Craig Mackay.

“We have been drilling continuously at the company’s Kouri project for ten months now with great success and remain confident of the significant further exploration potential within the Kouri licence area.”

A maiden mineral resource of one-million ounces of gold has been released at Kouri, but Mackay points out that the resource estimate extends only 90 m below surface, and remains open at depth.

“Given the results of both our recent reverse circulation and auger drilling, we believe there is excellent potential to both substantially expand and add value to the existing mineral resource base at Kouri. The current fundraising allows us to proceed with the work we believe is required to rapidly progress the project, without delay.”

In addition to the share placement, Golden Rim will also undertake a share purchase plan, to raise an additional A$1-million with a maximum of 38.4-million shares being offered to existing shareholders.