Canadian mineral explorer Pasofino Gold has entered into a nonbrokered private share placement to raise $5.5-million, of which about $4.5-million has been subscribed for by Turkish miner Esan.
The funding provides sufficient capital for Pasofino to complete the definitive feasibility study (DFS) on Aim-listed Hummingbird Resources’ Dugbe gold project, in Liberia, over which Pasofino has an earn-in agreement. The study is on track to be delivered in the second quarter of 2022.
This fundraise follows the mineral resource estimate update announced by Pasofino last month, which confirmed a National Instrument 43-101 compliant measured and indicated gold resources of 3.4-million ounces of gold.
Pasofino has an earn-in agreement for a 49% stake in the Dugbe project, with Hummingbird maintaining a controlling interest of 51%.
Hummingbird CEO Dan Betts says Pasofino’s successful capital raise enables the company to complete the feasibility study work on the Dugbe project and allows the miner to finish its earn-in conditions as per the entities’ joint venture agreement.
“We are particularly encouraged by the material uplift in the measured and indicated resources recently announced by Pasofino, which should pave the way for a robust DFS showcasing solid project economics,” Betts comments.
Also of particular interest is the material investment by Turkish mining group Esan, which Betts is confident will add “significant value” to the project as it gains momentum.