Perth-based Burey Gold (ASX:BYR) has entered into a mandate agreement with BGF Equities Pty Ltd to place 60 million Burey shares at 10 cents per share, to local and overseas investors, to raise $6 million.
The funds, together with the Burey’s existing cash assets, will be used to carry out exploration programmes across the company’s highly prospective mineral properties in Guinea, West Africa.
Ron Gajewski, chairman, said funds will enable an immediate start of a survey and mapping program at the newly acquired Kossanke property, in preparation for a drill campaign on the property.
Burey has secured the use of a track mounted rig for both RC and DD programs, with a start expected to be made at its Balatindi project within the next few days.
The placement will be completed in two tranches. Tranche 1 for approximately 25 million shares to raise $2.5 million will be completed within a week.
Tranche 2 for the remaining 35 million shares for the balance of $3.5 million is subject to shareholder approval and a meeting date will be set shortly.
The company’s largest shareholder, Perseus Mining Limited (ASX, TSX: PRU), has agreed to participate in the share placement to the extent necessary to maintain its 19.89% interest in Burey.
Burey has also appointed BGF Equities Pty Ltd to provide ongoing corporate advisory services. The fee includes the issue of 5 million options to acquire Burey shares. 2,500,000 options will be exercisable at 15 cents each, from the date of their issue until 31 March 2013 and 2,500,000 options will be exercisable at 20 cents each, vest on 1 January 2012 and expire on 31 March 2014.