PERTH (miningweekly.com) – Gold explorer Chesser Resources will raise A$6-million to fund large-scale drilling at the Diamba Sud gold discovery, in Senegal.
The company has received firm commitments from institutional and sophisticated investors for the placement of 75-million shares, at a price of 8c each.
Chesser said on Friday that strong demand had been received from existing shareholders, as well as a number of new institutions.
The placement will be settled in two tranches, with the first 29.3-million shares placed under the company’s existing placement capacity, while the second tranche of 45.6-million shares will be subject to shareholder approval.
The funds raised will be used to undertake large-scale drilling at the Diamba Sud gold project.
“The placement will enable us to significantly advance the Area A discovery and the new prospective trends encountered in recent drilling, as well as continue to test additional compelling targets,” said MD Mike Brown.
“Planning for further drilling shall commence when final results from the recently completed Phase 4 drill programme are received.”
Meanwhile, Mark Connelly has been appointed as nonexecutive chairperson to the company’s board, effective immediately.
Connelly was previously chairperson of West African Resources, and is currently the nonexecutive chairperson of Oklo Resources.