Golden Rim Resources Ltd (ASX:GMR) is raising $5.3 million, before costs, via a share placement, with funds going to its flagship Kada Gold Project in Guinea, West Africa.
The company has received strong support from shareholders, key strategic and institutional investors and intends to raise up to a further $1 million via a Share Purchase Plan (SPP) on same terms as placement.
Golden Rim will issue 67,948,718 shares at $0.078 per share under the placement and plans to issue the remaining 10,460,330 shares under the placement by way of a second tranche subject to shareholder approval.
Placement and SPP participants are offered options on a 1:3 basis, expiring 24 months from the date of issue and exercisable at $0.12.
Excellent start to 2022
“Golden Rim has had a terrific start to the year with our maiden Kada mineral resource estimate of 930,000 ounces of gold and the release of our scoping-level metallurgical test-work at Kada that demonstrates the gold mineralisation is free-milling with high gold recoveries and can be processed via conventional carbon-in-leach (CIL),” managing director Craig Mackay said.
“Our objective over the remainder of the year is resource growth with the focus on expanding the shallow oxide-transitional ounces at Kada.
"The maiden mineral resource is just the start. It is open at depth and along strike and only covers 1-kilometre along the highly prospective 15-kilometre Kada Gold Corridor.”
The funds will go a long way to helping GMR meet its objectives.
Use of funds
Golden Rim will start a reverse circulation (RC) drilling program at Kada in late March/April 2022 to target oxide resource growth.
Drilling will initially test multiple oxide gold targets along the 15-kilometre Kada Gold Corridor outside the inferred mineral resource of 930,000 ounces of gold.
The work program will include:
- RC drilling along the 15-kilometre Kada Gold Corridor, to test multiple target areas highlighted in recent auger drilling;
- An Induced Polarisation (IP) geophysical survey; and
- Auger drilling of additional regional targets in the coming months.
The placement also provides working capital.
About the SPP
Shareholders registered by Wednesday, March 16, 2022, have the opportunity to subscribe for additional shares and options in Golden Rim via the SPP.
Shareholders can participate in the capital raising on the same terms as the placement, with eligible shareholders able to acquire up to $30,000 worth of shares free of brokerage and commission, at a price of $0.078 per share.
The number of shares to be issued under the SPP is approximately 12,820,513, being the number of shares required to raise $1 million.
The exercise price of the SPP options is $0.12 with an expiry date 24 months from the date of issue.