The Golden Rim Resources shares will be issued under the company’s 10% additional placement capacity and is not subject to shareholder approval.
The funds raised by the placement are intended to be used for infill drilling at Kouri in Burkina Faso, both reverse circulation drilling and diamond drilling; maintaining and exploring commercial opportunities with respect to Paguanta; as well as for general working capital.
Having completed the placement, Golden Rim Resources also advises of a revised asset focus and change in strategy for the business going forward.
Significant shift in company focus
Golden Rim Resources’ focus will return to West Africa and Kouri, of which it owns 100%, will become its flagship project.
Golden Rim Resources plans to outline a maiden JORC Mineral Resource at Kouri by the end of 2017.
While Golden Rim Resources has delivered on its technical goals at the Paguanta zinc-silver-lead-gold project (Paguanta) in Chile, it is receiving little value on the Australian Securities Exchange, as is reflected in its share price.
As such, Golden Rim Resources has executed an exclusive mandate with leading Canadian broking firm, Eight Capital to secure a corporate transaction for Paguanta.
Golden Rim Resources is open to considering various forms of transaction including an investment in the company directly, project farm-in, full or partial sale.
Golden Rim Resources believes it can generate substantial value from Paguanta, particularly given Canadian listed companies with zinc projects appear to receive far greater support and valuations than in Australia.
While Golden Rim Resources is disappointed to be seeking a transaction for Paguanta it believes this is likely to result in the best outcome for shareholders.
Golden Rim Resources’ portfolio continues to provide optionality and has enabled the shift to focus on Kouri with minimum disruption and with the ability to potentially unlock significant value for shareholders.
The company’s recently conducted reverse circulation drilling at Kouri returned very encouraging results. Kouri has an existing JORC exploration target of approximately 500 000 – 611 000 oz of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold (~70 m depth).
With additional infill and deeper drilling Golden Rim Resources intends to convert the JORC exploration target to a maiden mineral resource by end of 2017.
The recent drilling results suggest the mineral resource will be larger than the exploration target, with new intercepts such as 18 m at 5.4 g/t gold, from 2 m, including 2 m at 45.6 g/t gold, located well outside the exploration target area.
Craig Mackay MD of Golden Rim Resources, says, “Golden Rim Resources is very pleased to secure Acorn Capital, one of Australia’s largest microcap investors, as a cornerstone investor in the company.”
“Golden Rim Resources now looks forward to commencing drilling and outlining a maiden resource at Kouri.”
“Golden Rim also looks forward to working with leading Canadian broking firm, Eight Capital, to develop a transaction that moves Paguanta forward and that benefits our shareholders,” concludes Mackay.
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