Golden Rim Resources (ASX: GMR) has been successful in raising funds in the current difficult markets, and has placed 85 million shares at $0.022 to raise $1.87 million.
The placement was made under the company's 15% placement capacity, and will be allocated to the Balogo Project in Burkina Faso - which has near-term production potential.
West Africa is the fastest growing gold producing region in the world, and hosts more than fifty >1 million ounce gold deposits.
Balogo hosts a high grade Inferred Resource at the Netiana Lodes of 850,000 tonnes at 6.8g/t gold for 185,000 ounces, with a Scoping Study on the Netiana Lodes indicating that the resources can support a robust, high margin, low capital cost, open pit mine development.
Metallurgy in preliminary testwork indicates recoveries in excess of 95%. The first gold production is targeted in 18 months.
To continue to progress the project, Golden Rim will undertake reverse circulation drilling of the new gold anomalies identified at Balogo, along with diamond drilling at Netiana to update the current resource estimate.
The company will also look to commence a Bankable Feasibility Study and environmental studies.
Divestment of non-core projects
With Golden Rim focussing on the Balogo and Korongou projects in Burkina Faso, the company has decided to divest non-core projects in Mali, Cote d’Ivoire and Burkina Faso.
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