JOHANNESBURG (miningweekly.com) – Aim-listed Sula Iron & Gold has conditionally raised £500 000 through a placing by investment bank VSA Capital and Africa-focused miner Madini Minerals for 129-million new ordinary shares at an issue price of 0.40p a share.
The issue price represents a discount of 13%.
The placing will support the development of its Ferensola project in Sierra Leone, which is highly prospective for gold, coltan and iron-ore.
“The board believes this placing is a particularly strong endorsement of the company's strategy at Ferensola. With two drill rigs and associated equipment now on site and drilling at the Ferensola project under way, the company is in a strong position to expand on its originally planned exploration programme of 2 400 m, potentially enabling a larger Joint Ore Reserves Committee-compliant exploration target to be identified," CEO Roger Murphy said in a statement.