19 Jul 2013 07:00
19 July 2013
Golden Saint Resources Ltd
("Golden Saint" or the "Company")
First day of dealings on AIM
Golden Saint Resources Ltd, the West African diamond and gold exploration company, is pleased to announce the admission today of its ordinary shares to trading on AIM and the commencement of dealings in its ordinary shares under the ticker GSR.
The Company has raised £3.5 million before expenses through a subscription and placing of 34,972,000 new ordinary shares at a price of 10p per share. The market capitalisation of the Company at the placing price of 10p per share on admission will be approximately £42 million.
The Company will be using the subscription and placing proceeds primarily to fund the planned exploration programme at its three exploration licence ("EL") areas in Sierra Leone.
Overview of the Company
The Company was established for the purposes of seeking admission to AIM following its acquisition of 75 per cent. of the issued share capital of Golden Saint Resources (Africa) Limited ("GSR Africa").
GSR Africa is an early stage diamond and gold exploration company which holds three grassroots ELs in Sierra Leone: Tongo which is prospective for diamonds; Baja which is prospective for gold and diamonds; and Moa which also is prospective for gold and diamonds. The objective of the current exploration activity is to add further value to the EL areas, with a view to identifying alluvial diamond and gold deposits for near term production whilst undertaking more extensive exploration for hard rock gold and diamond deposits.
To date, GSR Africa has undertaken reconnaissance mapping and a number of sample pits have been dug within each EL area. The EL areas are situated within the Archean Man Shield, part of the West African Craton.
Exploration Licence Areas
Tongo
The Tongo EL area is located northeast of Kenema and the EL is valid for a period of four years, expiring in November 2015. It covers an area of approximately 53.42km².
Baja
The Baja EL area is located approximately 20km west of Kenema and is valid for a period of four years, expiring in December 2015. The area covers approximately 240.11km².
Moa
The Moa EL covers approximately 46.45km² and is located in the Koya and Dama Chiefdoms in the Kenema District. The licence is valid for a period of four years and expires in January 2016. This EL area covers the Kambui Hills which are considered to be highly prospective for gold.
Ongoing artisanal workings for diamonds were reported on all three EL areas and for gold within the Baja and Moa EL areas.
Cyril D'Silva, Chairman of Golden Saint, commented, "I am very pleased with the support Golden Saint has received from investors and I am delighted to welcome our new shareholders to the Company. We believe the funds raised will help us to achieve our objective to further expand the current exploration programmes at Tongo, Baja and Moa. We believe that a quotation on AIM will have a significant impact on how we move forward and assist the Company's continuing development and future financial requirements."
Beaumont Cornish Limited and Optiva Securities are the Company's Nominated Adviser and Broker respectively.
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For further information please contact:
Beaumont Cornish
Roland Cornish / Emily Staples
+44 (0) 20 7628 3396
Optiva Securities
Jason Robertson/Jeremy King
+44 (0)20 3411 1881
Newgate Threadneedle
Graham Herring/Robyn McConnachie
+44 (0)20 7653 9850