Golden Rim Resources Ltd. has filled its boots ahead of a gold exploration campaign in West Africa via a $5 million placement.
Funds raised will accelerate the company’s exploration efforts at its Kada Gold Project in Burkina Faso and its Kouri Gold Project in Guinea.
Kouri has a mineral resource estimate of 2 million ounces and Golden Rim has a maiden mineral resource estimate for the Kada project in its sights.
Managing director Craig Mackay said the demand for the placement was significant and would allow the company to make the most of its resources in West Africa.
“We are extremely pleased with the demand received, we welcome a number of new institutional and sophisticated investors on the share register and we look forward to aggressively pursuing our work programs through 2021 and beyond and continuing to deliver value for shareholders,” he said.
The next steps
Mackay said the funding would allow Golden Rim to proceed with a scoping study for the Kouri project, which precedes pre-feasibility and definitive feasibility studies, and unlock a major works program on the newer Kada project.
“Kada aims to deliver a maiden mineral resource in the area of previous Newmont drilling along with systematic exploration on the broader project area which is highly prospective for further gold mineralisation,” he said.
“Both of our gold projects lie within the highly prospective Birimian greenstones of West Africa which now host more than 60 gold deposits in excess of 1 million ounces of gold and more than 35 gold deposits in excess of 3 million ounces.”
Work programs on the Kada project include the newly-acquired Damissa Koura permit adjoining the existing area, where the company is working towards a maiden mineral resource in the second half of this year with airborne geophysics, auger drilling of regional targets and infill drilling planned for the coming months.
At the Kouri project, in addition to the scoping study, diamond drilling will be undertaken on the Diabatou shoot and infill drilling towards a mineral resource update in the second half of the year.
Placement well supported
The placement saw 555,555,556 shares snapped up at 0.9 cents a piece with around 77% of those taken by institutional, sophisticated and professional investors in a single tranche.
The remaining 23 per cent of shares will be issued to a few investors that elected to go into a deferred tranche that is subject to shareholder approval at its next general meeting.
In a show of confidence for Golden Rim’s prospects, chairman Adonis Pouroulis invested $362,000 in the company by subscribing for more than 40 million shares.