At the IPO price of 16.5 p per share, Hummingbird Resources’ interest in Cora Gold is valued at approximately US$5 million.
The majority of the net proceeds of the Cora Gold fundraising will be used for a planned exploration programme that will principally focus on the company’s flagship project, the Sanankoro gold discovery in southern Mali (Sanankoro), as well as some exploration activities on its other properties.
Sanankoro will be the focus of Cora Gold’s activities in the near term with the ultimate objective being to establish a mineral resource estimate.
Cora Gold’s nominated adviser is Allenby Capital and its Joint Brokers are Mirabaud Securities and Beaufort Securities.
- Developing a highly prospective gold portfolio including three principal de-risked project areas (1 700 km2) in established gold regions: Yanfolila gold belt in Mali and Kenieba Window in Mali/Senegal with multiple, high potential, drill ready gold targets
- Raised £3.45 million on AIM Admission with proceeds to further develop Sanankoro which has the potential for a standalone mine development
- Substantial historical exploration spend by Randgold and Gold Fields since 2001 has provided a comprehensive database of information
- To date detailed exploration has only focused on two zones, of 600 m and 1 000 m length, within the 14 km long gold bearing structures identified from reconnaissance drilling
- Extensive artisanal workings have confirmed the continuity of the mineralisation at Sanankoro
- 15 000 m exploration drilling programme planned, prioritising expansion of Sanankoro
- Up to 10 000 m exploration programme at additional project areas located near to existing gold mines and which have the potential to host significant new gold discoveries
- Potential routes for early processing of ore:
- 34% shareholder Hummingbird Resources’ Yanfolila gold mine (first gold pour Q4, 2017) within trucking distance from Yanfolila project area
- Sadiola gold mine (AngloGold Ashanti-IAMGOLD) within trucking distance of Diangounte project area
- Highly experienced and successful management team has a proven track record in making multi-million ounce gold discoveries, many of which have been developed into profitable mines
“Today is a seminal day for Cora Gold marking our admission to the London Stock Exchange as a West African gold developer and explorer,” says Cora Gold CEO, Jon Forster.
“Our objective is to create value by turning the Sanankoro gold discovery into a mine and the drill ready gold targets at our other project areas into discoveries.
“We were delighted with the reception to Cora Gold in the lead up to our IPO and having raised £3.45 million we are now funded to further develop our portfolio of highly prospective gold projects in established gold areas, predominantly in Mali.
“Our initial focus will be on our flagship Sanankoro project and with substantial historical data from both Gold Fields and Randgold we believe we have very good potential to increase the scale of the discovery to +1 Moz of in-situ gold and create a standalone mine.
“We have the added benefit of exploring in the shadow of gold mines at two of the project areas, where any new discoveries would be within possible trucking distance, and as such providing Cora Gold with possible routes for early processing of ore puts us in a strong position as we commence our work programme with a view to creating maximum value for our shareholders,” concludes Forster.
Feature image credit: Wikimedia