LONDON (Alliance News) - Cora Gold Ltd on Thursday said it has raised GBP549,245 through subscription and placing of 11.0 million shares at a price of 5 pence each to fund its flagship drill programme in Mali.
Shares in Cora closed down 9.9% at 5.68 pence on Thursday.
Gold exploration company Cora will use the money for its Sanankoro gold discovery and will target high-grade oxide ore with the goal of delineating starter pits for future production.
Sanankoro has an exploration target of between one and two million ounces to a depth of 100 metres.
Binding subscription commitments for a total of 3.2 million shares have been received from substantial Cora shareholder Michael Farmer and Chief Executive Jonathan Forster, as well as from entities connected with Independent Non-Executive Chairman Geoffrey McNamara and Non-Executive Director Paul Quirk, and from other subscribers.
Commitments for the remaining 7.8 million shares were obtained from other investors.
"Our geological teams are re-mobilising to site and are preparing for a follow up drill programme at Sanankoro that will aim to commence delineation of gold mineralisation in areas anticipated to have potential for higher grades, focusing predominantly in the oxide horizons, which will act as "starter-pits" and would give us the opportunity to fast-track development at Sanankoro," said Forster.
"A preliminary metallurgical test programme is also being planned," he added.
Cora Gold (CORA)