- Golden Rim Resources (GMR) has seen a healthy bump to its share price today, after the company completed a $5 million placement
- The company issued just over 555.5 million fully paid ordinary shares at a price of 0.9 cents each
- The proceeds will be used to progress exploration activities at the Kada Project in Guinea and the Kouri Project in Burkina Faso
- Drilling has been designed to help estimate a maiden resource at Kada and upgrade the resource at Kouri and is expected to begin in the first quarter of this year
- Golden Rim Resources is up 10 per cent to 1.1 cents per share
Golden Rim Resources (GMR) has seen a healthy bump to its share price today, after the company completed a $5 million placement.
The Melbourne-based exploration company issued just over 555.5 million fully paid ordinary shares at a price of 0.9 cents each, roughly 40.22 million of which were purchased by Golden Rim’s Chairman, Adonis Pouroulis, through a family trust for $362,000.
Foster Stockbroking and LHC Mine Finance acted as joint lead managers of the placement and will each receive 10 million options in exchange for their services, exercisable at a price of 1.8 cents per share for a period of two years.
The proceeds will be used to fund exploration activities at Golden Rim’s Kada Gold Project in Guinea, which includes the recently acquired Damissa Koura permit.
The company is working to establish a maiden resource estimate at the Kada Project in the second half of this year, with airborne geophysics, auger drilling of regional targets and infill drilling planned for the coming months.
A diamond drilling program has also been planned at the two-million-ounce Kouri Gold Project in Burkina Faso, focusing on the Diabatou shoot where infill drilling will seek to update the current resource estimate.
Craig Mackay, Managing Director of Golden Rim Resources, said he is pleased with the level of demand for the placement, and looks forward to aggressively pursuing the company’s work programs in 2021.
“Both of our gold projects lie within the highly prospective Birimian greenstones of West Africa which now host more than 60 gold deposits in excess of [1 million ounces] of gold and more than 35 gold deposits in excess of [3 million ounces] of gold,” he added.
Golden Rim Resources is up 10 per cent to 1.1 cents per share at 1:38pm AEDT.