Mako Gold Ltd (ASX:MKG) has completed the second tranche of an oversubscribed share placement with $10 million raised to support efforts to grow the company's gold bounty in West Africa.
Together with existing cash reserves of $2.8 million, proceeds from divestment of the Niou Project of $1 million and completion of the placement ensures Mako is well-funded to execute a systematic exploration and growth strategy.
This strategy aims to extend existing high-grade mineralisation and test multiple high-priority regional prospects with an aim to deliver a maiden mineral resource estimate in 2021.
Placement funds will also be used towards general working capital requirements and corporate costs.
Drilling to restart
Drilling is ongoing at Napié Project in Côte d’Ivoire with a 10,000-metre reverse circulation (RC) and diamond drill program at Tchaga Prospect set to recommence next week following a temporary suspension due to heavy rains at the peak of the wet season.
Mako anticipates receiving the results from 15 RC drill holes and 14 diamond holes shortly.
A second drill rig secured from Geodrill will begin drilling in November on high-priority regional prospects at Napié including Gogbala, Tchaga East and Tchaga North.
Placement details
A total of 44,918,290 shares at an issue price of 11.5 cents per share were issued in the second tranche for gross proceeds of around $5.17 million.
This second tranche placement was approved by shareholders at a general meeting of the company on September 28, 2020.
The company has also granted 4 million unlisted advisor options with an exercise price of 17.25 cents, expiring on September 30, 2022, as approved at the general meeting.