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Golden Saint raises funds for Sierra Leone diamond project

Golden Saint Resources has raised new money to allow it to proceed with work on its Sierra Leone diamond prospects
Golden Saint raises funds for Sierra Leone diamond project
Bulk sampling at Tongo is already underway

It’s always a sign of the market’s confidence in a story when a company issues new equity at a discount and the shares nonetheless rise.

That was the case with Golden Saint Resources Ltd (LON:GSR) on the morning of 18th May, when it announced a £536,000 raise at 0.056p per share.

The share price duly responded by rising more than 11% to 0.071p by mid-morning.

In early trade the shares got as high as 0.087p.

This is no mean achievement, argues finance director Keng Hock Seah.

“It’s a very tough market,” he says. “But we have very supportive investors who continue to see value in the company.”

What’s more, although existing shareholder Millenium Vista acted as cornerstone in the fundraising, the company was also able to attract in new investors too.

This, says Keng, is testament to the upside at the company’s three diamond prospects in Sierra Leone: Tongo, Baja and Moa.

Bulk sampling work at Tongo got underway three weeks ago, and with the ink still drying on written confirmation of the licenses from the government, the company now looks poised to make some real progress.

The new money will help with that. The bulk sampling, says Keng, is “a continuing thing”, but a crucial moment will come when the company’s geological consultants Rock Forage arrive on site in early June.

Rock Forage will assess ongoing operations and also start to take a view on what the likely mining techniques will be going forward.

Keng talks of the possibility of dredging at Tongo, for example, as the company initially targets the recovery of alluvial diamonds before turning its attention to the potentially more lucrative but longer-term hard-rock targets.

Once Rock Forage has reached its conclusions, further market updates are likely.

“We won’t disappoint,” says Keng. 

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