- Golden Rim Resources has announced it will raise $5.27 million to accelerate drilling at its Kouri Gold Project in Burkina Faso
- Funds will be raised through a share placement and a fully underwritten rights issue
- Recent drilling programs at the Kouri Project returned exceptionally high-grade gold intercepts
- A 14,000-metre drilling program will commence in September to grow the existing Mineral Resource
Golden Rim Resources has announced it will raise $5.27 million to accelerate drilling at its Kouri Gold Project in Burkina Faso.
The $5.27 million is being partially raised through a $1.82 million share placement through the issue of approximately 130 million fully paid ordinary shares at an issue price of 1.4 cents per share.
The remaining funds are being raised through a fully underwritten rights issue for approximately $3.45 million. The issue price represents a 17.6 per cent discount to the last traded price of 1.7 cents and a 23.2 per cent discount to the 15 day volume weighted average price of 1.8 cents.
Kouri Gold is a prospective project with an Indicated and Inferred Mineral Resource of 32 million tonnes at 1.4 grams per tonne of gold for 1.4 million ounces of contained gold.
Golden Rim recently completed a transformational transaction to acquire 2 permits that adjoin Kouri, increasing the project area from 58 square kilometres to 245 square kilometres.
As announced on July 18 2019, the company has secured the rights to purchase yet another permit that will increase the project area by an additional 80 square kilometres.
Earlier this month, Golden Rim received exceptional results from first drilling at the new permits. This included a bonanza intercept of 7 metres at 121.2 grams per tonne of gold from 41 metres, including 1 metre at 783.9 grams per tonne of gold from 44 metres at the Diabatou prospect.
Part of the raised funds will be used for follow-up diamond drilling at the Diabatou prospect, a systematic auger drilling program and Induced Polarisation (IP) geophysical survey to identify additional target areas.
A reverse circulation and diamond drilling program, for a further 14,000 metres, will be conducted along with the northeast strike extension of the 1.4 million ounces Mineral Resource at Kouri, extending into the new permits and around the high-grade gold mineralisation at Maré.
Golden Rim believes there is great potential for drilling to increase the Mineral Resource at Kouri.
Drilling is expected to commence in mid-September.