Birimian Gold raises $2M at 30 per cent premium

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THE DRILL SERGEANT: Birimian Gold (ASX: BGS) has placed 95.2 million ordinary shares with Sprott Global Resource Investments at an issue price of 2.1 cents per share, a 30 per cent premium to the current market share price, to raise $2 million.

Sprott is a US-based broking and funds management firm with a track record of identifying and funding successful early stage resource companies.

Birimian claimed Sprott’s readiness to take such a strong position in the company – at a 30 per cent premium – is indicative of the long-term potential of the company’s Massigui project in southern Mali and an endorsement of its management.

The company indicated it now intends to use the net proceeds from the placement to:

–    Advance its new gold discovery at the Ntiola prospect, situated within the Massigui project;

–    Compile and evaluate recently-acquired Randgold exploration data to generate new high quality drill targets;

–    Explore the broader Massigui project; and

–    Continue to pursue additional growth opportunities.

“This Placement represents a strong endorsement and support from a major resource investment group, Sprott,” Birimian Gold managing director Kevin Joyce said in the company’s announcement to the Australian Securities Exchange.

“This clearly validates the company’s strategic position in West Africa and the prospectivity of the Massigui project.”

Birimian is currently conducting a second phase reverse circulation and diamond drill program at the Ntiola prospect, which is testing for further high-grade gold mineralisation beneath, and along strike from, the currently defined shallow mineralised zone.

 

Ntiola prospect previously reported drill hole locations and results. Source: Company announcement

 

Better reported intersections from recent drilling so far include:

–    11 metres at 4.21 grams per tonne gold from 33 metres;

–    22m at 3.46g/t gold from 78m;

–    18m at 2.85g/t gold from 3m; and

–    4m at 7.68g/t gold from 45m.

Birimian Gold said it anticipates first analytical results from this RC and diamond drilling program to be available towards the end of May.