Golden Rim Resources Ltd (ASX:GMR) has completed a bookbuild for a placement to raise about $2.25 million via the issue of shares at 1.3 cents each to institutional, sophisticated and professional investors.
As part of the placement, Capital Drilling Ltd (LON:CAPD) will become a cornerstone investor in Golden Rim with a ~12% holding in the company.
Most of the funds raised from the placement will be used for work programs at the Kouri Gold Project in Burkina Faso where there is significant potential to expand the resource of 1.4 million ounces of gold.
READ: Golden Rim Resources intersects bonanza gold grades up to 89.5 g/t in Kouri drilling
The funds will be used for the following key activities:
• reverse circulation and diamond drilling;
• exploration work including trenching and auger drilling;
• completion of the acquisition of the Goueli and Margou permits; and
• general working capital.
Golden Rim managing director Craig Mackay said: “This is a very exciting time for Golden Rim.
“We have worked hard over the past 12 months to define a 1.4 million ounce mineral resource at Kouri which remains open at depth and along strike.
“We have also made a new gold discovery at Red Hill, negotiated the acquisition of the neighbouring Goueli and Margou permits and have undertaken a structural interpretation which has identified a number of high priority areas for drill testing.”
READ: Golden Rim Resources extends agreement to acquire Burkina Faso gold permits
Mackay added “The strong support for the placement not only validates our strategy but will allow us to undertake a significant drilling program to target our four highest priority target areas over the forthcoming drilling season.
“I would like to thank our existing shareholders who supported this raising and welcome our new investors to Golden Rim, in particular, Capital Drilling, who took a cornerstone position in the placement.”