LONDON (Alliance News) - Alecto Minerals PLC Friday said it had raised GBP1.5 million before expenses through a placing of 100 million new shares to fund the advancement of its main Kossanto Gold Project in Western Mali.
In a statement, the AIM-listed mine exploration company said drilling to increase the maiden JORC compliant resource of 107,000 ounces of gold is nearing completion at Kossanto.
JORC is the Joint Ore Reserves Committee, which provides mineral-resource classification schemes.
"Having recently returned from a site visit to Kossanto in Mali, I am excited with the progress made on the ground as we near completion of our infill and extension drilling programme at the Gourbassi East target, aimed at expanding our current resource as well as opening up the opportunity Massakama provides as an additional target," Chief Executive Mark Jones said in a statement.
The Massakama area lies in the west of the project area, and the company says tests have shown it has potential for high gold grades and a large area of mineralisation. In December, it said it had found "exceptional" gold grades in the area.
"With this in mind, it has given me confidence to seek additional funds, which have been placed at a 50% premium to the funds raised just two months ago," Jones added.
In November, Alecto raised GBP1 million in a placing at 1 pence each. Friday's placing was down at 1.5 pence a share.
Alecto shares were down 13.6% at 1.8799 pence Friday morning as the placing set a new reference price.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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