THE BOURSE WHISPERER: Vital Metals (ASX: VML) announced it has raised $800,000 via a share placement to fast-track gold exploration and pre-development activities at the company’s high-grade Kollo gold project in Burkina Faso, West Africa.
The company said it intends using the proceeds of the share placement to:
Undertake in-fill drilling and extensional drilling along the Kollo trend to test for extensions of the known mineralisation;
Fund a Scoping Study on the potential development options at Kollo, which will consider mining, processing methods, infrastructure, waste management and environmental approvals. This Study is targeted for completion by the end of August 2016; and
For general working capital purposes.
“This represents a significant vote of confidence in our strategy to pursue gold exploration in Burkina Faso as a near-term strategy to unlock value for our shareholders,” Vital Metals managing director Mark Strizek said in the company’s announcement to the Australian Securities Exchange.
“Exploration at Kollo has to date been focused on high-grade, near-surface gold mineralisation which appears to be amenable to open pit mining, opening up the potential for an attractive source of near-term cash-flow.
“The proceeds of this placement will be used to test the extents of gold mineralisation along the Kollo trend.”