ASX-listed Desert Metals has received commitments for a placement of shares and attaching options to raise A$3.75-million to fund drilling and exploration in Côte d’Ivoire and to continue exploration on its Western Australian portfolio.
The placement, Desert says, was “heavily oversubscribed” with bids of more than A$6-million received. The placement was strongly supported by sophisticated investors, especially from existing shareholders of acquisition target CDI Resources.
To raise the A$3.75-million, Desert will place 115.4-million shares at A0.0325 each to sophisticated and professional investors.
The placement will increase Desert’s cash position to about A$4.25-million.
Earlier this week, Desert announced that it was taking its hunt for gold and lithium to West Africa, by acquiring the issued share capital of CDI Resources.
CDI currently owns a 51% interest in Smart Mineral Exploration Côte d’Ivoire, which holds the flagship Tengrela South project and has a right to earn up to an 80% interest. This project is well advanced, has outstanding historical results, and is particularly exciting given its location within 30 km of Perseus Mining’s Sissingué gold mine and 10 km of the Atex lithium discovery made by Firering Strategic Minerals in a joint venture (JV) with Atlantic Lithium.
In addition, CDI has the rights to earn a majority interest in six additional mineral exploration projects in Côte d’Ivoire under low-cost JV arrangements.