Sign up Australia
Proactive Investors - Run By Investors For Investors

Vital Metals funded for aggressive gold drilling in West Africa

Burkina Faso continues to emerge as a key gold producing country.
Vital Metals funded for aggressive gold drilling in West Africa
Vital drilling in Burkina Faso

Vital Metals (ASX:VML) has received strong support from investors in a heavily oversubscribed placement at 1.25c per share to professional and sophisticated investors.

The funds will be used to aggressively expand gold exploration activities on the company's three wholly-owned exploration permits in Burkina Faso, West Africa.

Burkina Faso continues to emerge as a key gold producing country with a mining friendly government, and is now the fourth largest producer in Africa, with seven gold mines commissioned over the past decade.

Vital is targeting 12,500 metres of predominantly reverse circulation drilling, with the company therefore set for an increase in exploration news flow during 2017.

Mark Strizek, managing director, commented:

"From here the company intends to substantially expand the previously limited auger drilling campaign to delineate further gold mineralisation structures providing a series of drill ready targets.

"As each set of results comes through, the potential of Vital’s permits continues to grow.

"We are delighted that Ausdrill is again supporting the company by participating in the placement and will be undertaking the drilling program."


Placement details

The placement will comprise two tranches: an initial tranche of 140 million shares (to raise $1.75 million, before costs); and a second tranche of 260 million shares (to raise $3.25 million, before costs).

In addition, Macquarie Bank Limited will be converting $0.6 million in debt to 48 million new shares over and above the placement.

Vital will repay Macquarie Bank $1 million, with the balance of $1.4 million debt to be repaid by 31 December 2018.


Analysis

Vital has a bank of high grade gold targets to drill test on the Kollo trend, with the company now fully-financed for continuous drilling on multiple targets well into 2018.

Burkina Faso has exceptional geological potential - while still being underexplored.

Vital's interests are along strike from a number of +1 million ounce gold deposits.

The upcoming drilling program will be highly anticipated by investors.

View full VML profile

Vital Metals Timeline

Related Articles

picture of someone mining
November 01 2016
Full leaching capacity was realised within the first three weeks of operation, with metal recovery in line with forecasts
Hummingbirds-diggers-(Resized).jpg
December 07 2016
The money is being provided in two tranches by Tarsus Mining Finance Fund, which specialises in bankrolling development projects such as Yanfolila.
picture of gold pour
November 10 2016
Kiziltepe is just 75km away and the plan will be for Tavsan to use a lot of its infrastructure for processing.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.