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CGA Mining invests C$15 million in African focused Ratel Gold via subscription receipts

Last updated: 08:07 07 Dec 2010 GMT, First published: 09:07 07 Dec 2010 GMT

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CGA Mining (ASX: CGX, TSE: CGA) has increased its investment in Ratel Gold (TSE: RTL) by acquiring 50 million subscription receipts at C$0.30 in Ratel through a subsidiary, for a total investment cost of C$15 million.

The investment was made through a private placement.

When the subscription receipts are exercised into common shares, CGA Mining will hold 67.5 million Ratel shares, or around 26.3% of the company.

Ratel is focused on developing gold and copper deposits in Africa, with the company earning a 51% interest in the Segilola Gold Project in Nigeria, the largest undeveloped gold resource identified in the country, and holds a 51% interest in the Mkushi Copper Project in Zambia.

At the Segilola Gold Project, Ratel has identified a maiden NI 43-101 compliant indicated resource of; 521,814 ounces of gold contained in 3,620,386 tonnes at a grade of 4.5g/t, and an inferred resource of; 96,445 ounces of gold contained in 747,590 tonnes at a grade of 4g/t, from just the first pass 11,000m drill program.

 

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