Birimian Gold raises $665,000 to continue gold exploration in West Africa's elephant country

Thursday, February 02, 2012 by Proactive Investors

With $1.3m in cash and a $600,000 stake in Aphrodite Gold, the current $5m market cap. means that investors are only placing a valuation of around $3m on the company's West African assets, which are surrounded by multi-million ounce gold mines.

Birimian Gold (ASX: BGS) is focused on gold exploration in the highly prospective region of West Africa, and has recently defined some new high priority targets.

To continue this exploration, the company has raised $665,000 by placing 19 million shares at $0.035 to institutional and sophisticated investors in Australia, which includes one free attaching option with an exercise price of $0.06, expiring in February 2014.

Birimian has already outlined where the funds will be allocated, which includes $400,000 for aircore and reverse circulation testing at the Dankassa Gold Project in Mali, where the company recently discovered a 12 kilometre long gold trend - which the company considers could be economic.

Results include the broad 46 metres at 0.48 grams per tonne (g/t) gold from 8 metres, which includes the higher grade zone of 12 metres at 1.00 g/t gold.

Other highlights were; 8 metres at 1.29g/t gold from 16 metres; and 16 metres at 0.56g/t gold from 28 metres.

Birimian Gold believes that there is considerable potential to discover economic thicknesses and grades of primary gold mineralisation along the trend, as the results to date confirms the presence of bedrock gold mineralisation.

Target evaluation in Mali's elephant country

Funds will also be allocated to delineating high quality drill targets at the Korindji Gold Project in Mali, which is strategically wedged between some multi-million gold ounce mines, which include the 13 million gold ounce Sadiola mine and the 4.5 million gold ounce Yatela mine.

Gold hunt in Liberia

Birimian Gold is also now well-funded to progress exploration at the Basawa Gold Project in Liberia, where initial field programs were recently completed, which included a broad spaced reconnaissance soil sampling program .

Importantly, artisanal workers have been active in the region, highlighting the fact there in known gold in the area. Field work will continue through the current dry season focusing on delineating high quality drill targets for testing.

Comment on valuation

The funding injection will give Birimian Gold a total of around $1.3 million in cash. The company also holds a 8.9% shareholding in Aphrodite Gold (ASX: AQQ), which on the current share price is valued at over $600,000.

With a market capitalisation of $5 million, investors are only placing a valuation of around $3 million on the company's highly prospective West African assets, which are located in areas surrounded by multi-million ounce mines.

Some major shareholders have already identified the potential of Birimian Gold, with Macquarie Bank (ASX: MQG) holding a 4.4% stake in the company, with Citicorp Nominees 4.1%.

Directors hold almost a third of all shares, highlighting the very tight register of Birimian Gold.

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