LONDON (Alliance News) - Georgian Mining Corp said Wednesday it has raised GBP2.6 million by way of a share placing, with the proceeds to be used to deliver resource at its Kvemo Bolnisi Copper-Gold project in Georgia.
Georgian Mining said it placed 32.5 million shares at a price of 8 pence each to new and existing shareholders.
The proceeds will be used to deliver an initial resource of between three and five million tonnes of open pit copper-gold sulphide mineralisation at the Kvemo Bolnisi project. The resource will be used to feed the one million tonnes per year excess capacity at its partner's flotation plant at the Mandeuli Mine, seven kilometres away.
Georgian Mining said it believes the resource has the capacity to feed a larger operation but the initial short-term resource target will generate cash flow at a low operating cost.
"This raise is a significant endorsement of our approach to commence production at low cost and for a minimum capex requirement at KB and I would like to thank our new and existing shareholders for their support. Having determined that KB has significant resource potential, the company and its JV partner in Georgia, are now defining the optimal parameters for exploiting this in a way that will enable us to maximise the copper-gold deposit at KB, whilst successfully leveraging on the opportunity to deliver revenues," said Greg Kuenzel, managing director.
Shares in Georgian Mining were up 1.5% at 8.38 pence Wednesday morning.
By Adam Clark; adamclark@alliancenews.com
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