29 Apr 2019 15:00
29 April 2019
Starvest Plc ("Starvest" or "the Company")
Additional Investment in Investee Company - Cora Gold Limited
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business, is pleased to announce that it has participated in a new placing for investee company Cora Gold Ltd (LON:CORA).
As part of the capital raising, Cora Gold Limited ('Cora Gold' or 'Cora') raised £1.35 million (before expenses) through a placing and subscription of 35,064,855 new Cora Gold ordinary shares at 3.85p each resulting in a new total number of shares in issue of 101,105,149 and a market capitalisation of £3.89 million upon admission to AIM which is expected to occur on or around 30 April 2019. The placing was announced on 5 April and is conditional on the placing being approved by Cora shareholders at a general meeting held earlier today at which the relevant resolutions were duly passed.
Callum Baxter, Chairman/CEO of Starvest commented, "Cora has demonstrated technical ability and continues to deliver robust gold results from its projects. Its flagship Sanankoro project in particular has advanced well since the company's listing in October 2017 with the shallow oxide potential growing and initial metallurgical results proving positive. We believe the current price offers an excellent opportunity for investment in a strong project and team. This is an interesting story and we look forward to following development of the projects."
Starvest purchased 571,429 Cora Shares representing 0.6% of Cora Gold for approximately £22,000 which was satisfied from the Company's existing cash reserves. Starvest now holds 0.86% of Cora's issued shares. The Company may look to increase its position in Cora if stock becomes available.
Cora Gold Ltd - Overview
Cora Gold is an AIM listed gold exploration company holding early stage exploration licenses in Southern and Western Mali, and Eastern Senegal. Their portfolio covers nearly 1,500km2 of prospective ground across two of the most prolific gold belts in the region, Yanfolila and Kenieba, which account for more than 65moz gold discovered over the last two decades.
Cora Gold has focused initial exploration activities on its flagship Sanankoro project, extending identified zones of gold mineralisation within a 14km long structural corridor yet to be fully tested.
The geological setting and scale of gold anomalies suggest the potential for a reasonable greenfield gold discovery at Sanankoro with the management team aiming for an initial 1moz gold. SRK Consulting have independently calculated an initial JORC compliant exploration target of between 30-50mt of ore at an average grade of 1.0-1.3g/t for 1.0-2.0moz gold.
To date mineralisation has been delineated to a depth of 100m, most of which is hosted within weathered material. Weathering (oxidation) depth ranges from around 50m to in excess of 100m across the exploration target area. The relatively soft oxidised rock would potentially allow for low-cost surface mining and milling.
For further information on Cora Gold please refer to their web site - www.coragold.com
Starvest will continue to closely follow the development of Cora Gold and we look forward to further information from Cora's on-going work at Sanankoro.
Starvest is a specialist mining and resource investment company and has the industry knowledge and market exposure to select compelling opportunities early in the investment cycle.
Callum N Baxter
Chairman & Chief Executive
29 April 2019
Enquiries to:
Starvest PLC
Callum Baxter or Gemma Cryan 02077 696 876 info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke 02073 835 100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn 01483 413 500