PERTH (miningweekly.com) – ASX-listed Golden Rim Resources will raise A$6-million in a share placement to advance exploration at its Kada gold project, in Guinea.
The company on Wednesday announced that it would undertake a two tranche share placement, with the first tranche consisting of 625 000 shares, at a price of 0.6c a share, to be placed under the company’s existing placement capacity.
A second tranche of 375 000 shares would be issued subject to shareholder approval.
The placement will include 500-million attaching options, on the basis of one new option for every two shares subscribed for, and with an exercise price of 1.2c each and an expiry of 18 months from the date of issue.
Golden Rim told shareholders that the company would use the proceeds from the placement to fund work programmes at the Kada project, with infill reverse circulation drilling to be undertaken at the Newmont gold resource area in preparation for a maiden mineral resource.
“We are extremely pleased to complete such a successful fundraising and we welcome a number of new institutional and sophisticated investors onto the share register,” said MD Craig Mackay.
“The wet season in West Africa is finishing and we look forward to commencing the second round of resource definition drilling at Kada shortly. We are on track to deliver a maiden resource for Kada towards the end of the fourth quarter of 2021.”