Emerging West African gold developer Golden Rim Resources (ASX: GMR) has raised $2.25 million from investors, through the issue of 173 million shares at 1.3 cents, to investors. Capital Drilling has emerged as a cornerstone investor in Golden Rim as part of the placement.
Emerging West African gold developer Golden Rim Resources Ltd (ASX: GMR) has completed a bookbuild for a placement to raise approximately $2.25 million (before costs) through the issue of approximately 173 million fully paid ordinary shares in the Company at an issue price of 1.3 cents per share.
Hartleys Limited acted as Lead Manager and Adelaide Equity Partners Limited acted as Co-Manager to the Placement.
Commenting on the strong support for the Placement, Golden Rim’s Managing Director, said: “This is a very exciting time for Golden Rim. We have worked hard over the past 12 months to define a 1.4 million ounce Mineral Resource at Kouri which remains open at depth and along strike.
“We have also made a new gold discovery at Red Hill, negotiated the acquisition of the neighbouring Goueli and Margou permits and have undertaken a structural interpretation which has identified a number of high priority areas for drill testing.
“The strong support for the Placement not only validates our strategy but will allow us to undertake a significant drilling program to target our four highest priority target areas over the forthcoming drilling season.
“I would like to thank our existing shareholders who supported this raising and welcome our new investors to Golden Rim, in particular, Capital Drilling, who took a cornerstone position in the Placement.”
New Cornerstone Investor As part of the Placement, Capital Drilling will become a cornerstone investor in Golden Rim with a ~12% holding in the Company (subject to shareholder approval of Tranche 2, described below). Capital Drilling is a company listed on the London Stock Exchange and has a focus on drilling in Africa.
Capital Drilling commenced operations in 2005 and has a fleet of 91 rigs, offering a range of services across exploration drilling, delineation drilling, underground, grade control and blast hole drilling, as well as ancillary services including minerals laboratory testing.
The company has extensive operations across the African continent including Egypt, Botswana, Tanzania, Mali, Mauritania, Cote d’Ivoire, and Burkina Faso, employing 1,000 people in Africa.
Capital Drilling is an investor and partner with a number of early-stage exploration companies and provides ongoing support to assist the management teams in their exploration activities.
Use of Funds The majority of the funds raised from the Placement will be used for work programs at Kouri where the Company believes there is significant potential to expand the current Mineral Resource of 1.4Moz of gold. In particular, the funds will be used for the following key activities:
· Reverse circulation and diamond drilling;
· Exploration work including trenching and auger drilling;
· Completion of the acquisition of the Goueli and Margou permits; and
· General working capital.