Golden Rim Resources (ASX: GMR) has raised $2.27 million through a rights issue of 33.66 million shares to existing shareholders.
Proceeds from the raising and the recently completed $2.1 million placement will be applied to work at the Balogo, Sebba and Korongou gold and copper-gold projects in Burkina Faso and Mali
The company had recently announced a maiden JORC Resource of 850,000 tonnes at 6.8 grams per tonne gold and positive Scoping Study results for the Netiana Lodes at Balogo.
The Study by Coffey Mining suggest that an open pit development on the Netiana Lodes would be robust, with an estimated NPV of $46 million and an IRR of 100%, giving it a capital cost payback of about six months.
Capital expenditure for a new modular 250,000 tonne per annum plant is estimated at $39 million while operating costs are about $600 per ounce at a treatment rate of 30 tonnes per hour.
The renounceable rights issue gave eligible shareholders the opportunity to purchase one ordinary fully paid share for every nine held at A$0.04 each while the placement of 52.5 million shares was also made at an issue price of A$0.04.
Golden Rim had $1.79 million in cash as of 31 December 2012.
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