Cora Gold has conditionally raised £2.89 million through a subscription of 60,838,603 new ordinary shares of no-par value in the Company at a price of 4.75 pence per share.
The funds raised will be used to accelerate exploration and development at the Sanankoro Gold Project following the recently reported Scoping Study which highlighted strong economic fundamentals.
Binding commitments to subscribe for a total of 60,838,603 Subscription Shares have been received from Lord Farmer, a substantial shareholder, certain directors of the Company and other subscribers.
The Fundraising is conditional on the passing of the necessary resolutions at a General Meeting of the shareholders of the Company and admission of the Subscription Shares to trading on AIM.
Bert Monro, CEO of Cora, says:
“I am very pleased with the support we have received in this fundraise from many of our existing shareholders. The funds will be used to push forward our Sanankoro Gold Project following the successful Scoping Study published in January 2020, which showed an 84% IRR and +US$19m/year free cash flow generation, at a US$1,400 gold price.
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“The Company will focus initially on growing oxide resources to increase the mine life and advancing metallurgical and other studies undertaken as part of the Scoping Study before moving into feasibility study work in 2021 on the back of anticipated positive results.
“We currently have a cash balance of over US$1 million, so combined with this fundraise of US$3.5 million Cora Gold is well financed to make significant progress on the ground over this year and next.”