LONDON (Alliance News) - Diamond and gold exploration business Golden Saint Resources Ltd Wednesday said it has raised GBP589,9904 via a share placing which it will use to advance its bulk sampling programme, as it reported increased losses in the first half.
Golden Saint said it raised GBP589,994.04 following the issue of 29.5 million new shares at a price of 2 pence per share. The company's shares were quoted up 3.5% at 2.20 pence Wednesday afternoon.
The funds raised will be used for general working capital purposes and will "enable the company to focus more aggressively on its bulk sampling program as well as further sponsorship of artisanal miners in the Zimmi region."
The fund raising comes on the same day the company posted a pretax loss of USD1.9 million for the six months ended June 30, compared with a USD552,000 loss a year earlier.
Exploration expenses and employee costs totalling USD1.2 million constituted the main part of the operating expenses whilst the remaining expenses related to general administrative costs of a corporate and management level. Golden Saint recorded no exploration expenses and employee costs in the previous year.
At an operating level, the company said it achieved a significant milestone when its Golden Saint Diamond Club launched its first sales of cut and polished diamonds.
At a private showing of its diamonds in August, 11 diamonds comprising 12.74 polished carats were sold. The sale proceeds of USD35,788 represented the first revenue stream for the group.
Following a visit to a diamond processing facility in Mumbai, India, management is currently in negotiations to send the remaining 204.65 carats of rough diamonds for cutting and polishing in preparation for sale.
Looking ahead, the company said it expects the remainder of 2014 to be characterised by increased exploration and bulk sampling activities in its existing tenements along with artisanal mining operations in the new licenced areas sponsored by the group.
"When the company has built up sufficient cash reserves, we will invest in a dense media separation plant to enable it to enhance security and increase the processing rate of the exploration bulk samples," Chairman Cyril D'Silva said in a statement.
"We will continue to evaluate prospective assets for investment so that the company is well positioned to generate returns for its shareholders," he added.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.