ASX-listed Golden Rim Resources has raised $3.45 million to further its Kouri gold project in Burkina Faso.
Burkina Faso – Golden Rim raised the cash under a Rights Issue. The Rights Issue was part of a broader capital raising that also included a share placement announced on 15 August 2019.
The placement raised approximately $1.82 million (before costs), bringing the total raised under the placement and Rights Issue (including the Shortfall Shares) to approximately $5.3 million (before costs).
The funds are intended to be used for exploration work Kouri, specifically, drilling, including reverse circulation (RC) drilling, diamond drilling, and auger drilling and an Induced Polarisation (IP) geophysical survey; and general working capital.
Golden Rim recently completed a transformational acquisition of two adjoining permits, Margou and Gouéli, increasing the project area from 58 km² to 245 km². Further, the company has secured the exclusive right to purchase another adjoining permit which, upon completion, will increase the project area by an additional 80 km².
Kouri shows potential
The first drilling in the new permits has returned exceptional results including a bonanza intercept of 7m at 121.2 g/t gold from 41 m, including 1m at 783.9 g/t gold from 44 m at the Diabatou prospect.
A portion of the funds raised will be utilised for diamond drilling follow-up around this high grade intercept and for a systematic auger drilling programme as well as an IP geophysical survey to identify additional target areas in the new permits which remain almost totally unexplored.
Drilling (diamond and RC) will be conducted along the projected northeast strike extension of the 1.4 Moz mineral resource at Kouri, extending into the new permits as well as around newly discovered high grade gold mineralisation associated with a 4 km long IP geophysical anomaly at Maré – Guitorga North, which lies 500 m north of the mineral resource on the Kouri Permit.
Golden Rim’s MD, Craig Mackay, said: “We are very pleased with the support we have received from existing shareholders and we welcome the new shareholders. The funding will allow us to push forward with our major drilling program which is scheduled to re-commence in just a few weeks.
“We are at an exciting time for the company as we head toward our next aim of being a company with over 2 Moz of gold in mineral resources,” he concluded.