Vital Metals announced on Tuesday that the heavily oversubscribed share placement, comprising 68 446 713 million shares at an issue price of US1.5c, is being undertaken to sophisticated and professional investors.
The proceeds will be used to advance ongoing gold exploration activities at its 100%-owned Kollo gold project in Burkina Faso, West Africa and to accelerate drill testing of the Elephant Creek gold prospect in Australia.
West African focus
Vital Metals recently commenced drilling at Kollo to in-fill and extend known high-grade gold mineralisation.
A diamond drill rig has completed 8 holes for 1 214 m of drilling. The reverse circulation (RC) rig is awaiting final customs clearances and will be mobilised to site pending a final physical inspection.
Initial results from the West African diamond-drilling programme are expected in September.
The Kollo gold project is located in the heart of one of West Africa’s most prolific gold districts, a region that is attracting growing attention due to recent exploration success and corporate consolidation activity.
Kollo is located approximately 50 km west of the producing Youga mine that was purchased in February 2016 for $25 million by MNG Gold. MNG Gold also recently completed the purchase of the high-grade Balogo project, located to the east of Kollo.
Previous RC drilling at Kollo has intersected significant gold mineralisation, which is developed for 6 km of strike along the north-east trending Kollo Shear Corridor.
Meanwhile, Vital Metals is also planning to test the gold mineralisation at the Elephant Creek prospect, which is located to the south of its 100%-owned Watershed Tungsten project in North Queensland.
The funds will allow Vital Metals to begin drill testing the gold mineralisation at Elephant Creek, which is located on a major regional geological structure, the Tullah fault zone.
Further updates will be provided on the progress of this programme in due course.
Vitals’ MD Mark Strizek, says the completion of the capital raising would ensure that the company was well-funded to advance both its exciting West African gold exploration programme and to commence a maiden drill programme at the Elephant Creek prospect.
“With drilling already well underway at Kollo, and initial results expected soon, and drilling planned to begin in Queensland soon, investors can look forward to strong upcoming news-flow on at least two fronts,” says Strizek.
“This is an exciting time for Vital as we move quickly to unlock the value of our key gold assets at a time of strong investor interest in the gold sector,” he adds.
“Both our West African and Australian projects offer significant exploration upside, leveraging off extensive historical work,” he concludes.