Golden Rim Resources Ltd (ASX:GMR) has received commitments from investors to raise A$6 million via the issue of shares at 0.6 cents each to advance exploration at its flagship Kada Gold Project in Guinea.
The placement includes 500,000,000 attaching options on the basis of one new option for every two shares subscribed for under the placement.
Shareholders can exercise the unlisted options at 1.2 cents within 18 months from issue date.
Golden Rim has also proposed a share consolidation of up to 1 share for every 15 shares on issue for shareholder consideration.
Resource definition drilling
Golden Rim will use proceeds from the placement to fund work programs on the Kada Gold Project with infill reverse circulation (RC) drilling in the Newmont gold resource area in preparation for the maiden mineral resource, RC drilling along the 15-kilometre gold corridor highlighted in recent auger drilling in the search for more oxide gold mineralisation, auger drilling of additional regional targets, and metallurgical test work in the coming months.
“Highly prospective Birimian greenstones”
Managing director Craig Mackay said: “We are extremely pleased to complete such a successful fundraising and we welcome a number of new institutional and sophisticated investors onto the share register.
“The wet season in West Africa is finishing and we look forward to commencing the second round of resource definition drilling at Kada shortly.
“We are on track to deliver a Maiden Resource for Kada towards the end of Q42021.
“We are excited by the oxide gold results to date from Kada and now have the funding in place to proceed with our strategy of advancing this core asset and delivering value for shareholders.
“Kada lies within the highly prospective Birimian greenstones of West Africa which now host more than 60 gold deposits in excess of 1Moz of gold and more than 35 gold deposits in excess of 3Moz of gold.”
High-grade hits at Newmont area
Golden Rim delivered broad zones of oxide gold mineralisation in August from its first round of resource definition drilling at Kada with results of up to 31 metres at 1.6 g/t gold and 20 metres at 2.4 g/t.
Encouraging results have been received from within the Newmont gold resource area and drilling outlined extensive areas of additional oxide mineralisation within and outside this resource area.