Join our daily newsletter At The Bell to receive exclusive market insights
- Amani Gold (ANL) is set to raise $2.55 million in a placement to institutional investors for exploration work at its projects in the Democratic Republic of the Congo
- Under the offer, the company plans to issue 2.55 billion fully paid ordinary shares at a price of 0.1 cents each
- These shares will be broken into two tranches, the first comprising one billion shares and the second consisting of the remaining 1.55 billion shares
- Exploration at Giro will include a 2000-metre drill program, while Gada will be the subject of soil sampling and infill work
- Amani Gold shares were reinstated to quotation today but remain unchanged, priced at 0.2 cents each
Amani Gold (ANL) is set to raise $2.55 million in a placement to institutional investors for exploration work at its projects in the Democratic Republic of the Congo.
Under the terms of the fundraising, the company intends to issue up to 2.55 billion fully paid ordinary shares for 0.1 cents each. These will also include 1.5 free attaching listed options, exercisable at a price of 0.15 cents over a period of three years from the date of issuance.
The shares will be issued in two tranches, with the first — comprising one billion shares — expected to be completed on July 1, 2020. The second will consist of the remaining 1.55 billion and is scheduled to take place on August 3, 2020, subject to shareholder approval.
Exploration at Amani’s Giro gold project is expected to include four core drill holes for a total of 2000 metres, beginning in August this year. These holes will be spaced 200 metres apart both north and south of existing drill holes GRDD034 and GRDD035, which previously outlined a region of high-grade gold mineralisation.
At the Gada gold project, Amani is planning to accelerate its exploration efforts with an initial phase of soil sampling over previously identified high-priority targets. This is anticipated to begin in early July and consist of 200 by 50 spaced samples.
A second phase of sampling will then infill this priority area with a further 400 by 200 spaced samples.
The results of this program will be used to establish the location for a preliminary reverse circulation drilling campaign totalling 5000 metres, beginning in October.
Jacky Chan, Managing Director of Amani Gold, welcomed the support for the placement that has already been seen from both existing and new investors.
“This drilling program is a significant step forward for Amani and with it we aim to establish a significant transition stage for the company,” Jacky explained.
“The funds will enable Amani to continue to grow the Kebigada deposit over the current 4.1 million ounces of gold and rapidly progress targets to drill stage at Gada,” he said.
Amani Gold shares were reinstated to quotation today but remain unchanged, priced at 0.2 cents each at 11:20 am AEST.
