ASX-listed Amani Gold has received commitments to raise up to $2.5-million through the issue of up to 833-million fully paid ordinary shares at an issue price of $0.003 a share.
Completion of the placement and issue of the placement shares will be subject to shareholder approval at a general meeting of shareholders that is likely to be held by early October.
Subject to shareholder approval, funds raised under the placement will be used to advance the Giro gold project, in the Democratic Republic of Congo (DRC); regional exploration and field costs; geophysics and mining studies; and for the potential Gada acquisition, as well as for general working capital purposes.
In respect to the Gada acquisition, Amani on Friday said it continued to progress its due diligence on the opportunity and its discussions with the relevant parties.
Commenting on the placement’s success, chairperson Klaus Eckhof said Amani welcomed the support from new investors and existing shareholders in the placement.
“Amani is embarking on a very exciting phase as we plan to accelerate drilling and exploration programmes – with drilling expected to start at the Kebigada deposit in the coming week.”
In addition to drilling commencing and ramping up throughout the year, subject to positive due diligence, Amani intends on adding the Gada gold project to the Amani gold portfolio.
“The acquisition of this package will see Amani as one of the major gold tenement holders in the DRC in a proven gold producing region near the 600 000 oz/y gold mine at Kibali.”
If Gada is added to the portfolio, Amani expects to carry out extensive soil sampling programmes and complete an initial 5 000 m exploration reverse circulation drilling programme, starting in September.