PERTH (miningweekly.com) – Metals developer Vital Metals will raise A$5-million through a share placement to accelerate gold exploration in Burkina Faso.
The junior told shareholders on Tuesday that some 400-million new shares would be issued, at a price of 1.25c each, to professional and sophisticated investors.
The shares will be placed in two tranches, with the first consisting of 140-million shares and taking place under the company’s existing capacity. The second tranche of 260-million shares will be subject to shareholder approval.
MD Mark Strizek said that the capital raising will support the company’s intention to ramp-up exploration in West Africa in 2017, adding that the company had a bank of high-grade gold targets to drill test on the Kollo trend.
Strizek also noted that Vital was fully financed for continuous drilling on multiple targets well into 2018.
In addition to the share placement, Macquarie Bank has also agreed to convert A$0.6-million in debt into 48-million new shares, over and above the placement, while non-executive chairperson David Macoboy will also subscribe to A$100 000 of additional shares above the A$5-million being raised.
‘From here, the company intends to substantially expand the previously limited auger drilling campaign to delineate further gold mineralistaion structures providing a series of drill ready targets,’ Strizek said on Tuesday.
“As each set of results comes through, the potential for Vital’s permits continues to grow.”