Asara Resources Ltd (ASX:AS1, OTC:GMRMF) has secured A$805,000 in additional funding through a share placement supported by existing institutional and sophisticated investors.
The placement was offered in a single tranche at a price of A$0.009 per share, with 89.44 million shares placed.
Proceeds will go to funding exploration and early metallurgical work on the oxide gold portion of the Kada Gold Project in eastern Guinea, which holds an indicated and inferred mineral resource estimate of 30.3 million tonnes at 1.0 g/t gold for 932,000 ounces.
“Compelling, undervalued investment”
“We are delighted with the strong support received from our existing shareholders in this placement. With 923,000 ounces of gold in Guinea, 2 million ounces in Burkina Faso and extensive copper exposure in South America, the company remains a compelling investment and is considerably undervalued,” Asara Resources managing director Tim Strong said.
“The company’s flagship Kada asset in Guinea, with almost one million ounces of gold, is perfectly positioned with the current increase in gold price. Funds raised from the placement assist us in growing the mineral resource.
“In addition to the Kada licence, the company has a landholding of 100 square kilometres under application increasing our exposure on the prospective Siguiri gold trend.
“Once these applications have been approved, the company will commence early exploration.
“Outside of Guinea, the company continues to look at ways to monetise our non-core assets in Burkina Faso and Chile, and discussions are in progress with various parties.
“I look forward to updating the market in the near term on the progress at Kada as well as divestment activities.’’