Junior gold explorer, Shield Mining, completed a private placement and rights issue, raising A$2.13 million (gross proceeds) which will be used to continue exploration of its Tijirit Prospect in Mauritania.
Shield Mining issued approximately 15.91 million shares at a price of 20 cents per shares and also placed a further 4 million shares and 4 million unlisted options (20 cents exercise price expiring 31 August 2011) with professional and sophisticated investors under the company’s 15% placement capacity.
“We are very pleased that our shareholders have supported this issue so convincingly. We are now planning the next campaign of drilling to further explore the exciting prospects at Tijirit in Mauritania.” Shield’s CEO, Mr David Netherway, said today.
Shares in Shield Mining have outperformed many junior mining companies in recent months, thanks to exploration results from Tijirit which confirmed the project hosts a similar style of gold mineralisation to the Tasiast Gold Mine which is located 35 kilometres to the north-west on an adjacent greenstone belt. The Tasiast Mine is operated by Toronto listed Redback Mining, and is currently producing 230,000 ounces of gold per annum.
The company said it would use the funds to continue drilling at the Sophie II and Sophie III prospects, plus first pass drilling at the Sophie I, Lily, Nancy and Eleanor West Prospects.