Volta raises $2.3 million to progress Burkina Faso projects

THE BOURSE WHISPERER: Emerging West Africa focused resources company Volta Mining has received firm commitments to raise $2.3 million (before costs) through a private placement of 9.2 million shares at 25 cents each together with one (1) free attaching option for every two (2) shares subscribed for and issued, exercisable at 20 cents on or before 30 June 2014.

The company currently has interests in the acquisition, exploration and development of iron ore and gold assets in West Africa.

The placement will be undertaken in two separate tranches as follows:

TRANCHE 1: 2.370 million shares (Tranche 1 shares) and 1.185 million options (Tranche 1 options) to raise $592,500 (together the Tranche 1 placement); and

TRANCHE 2: 6.83 million shares (Tranche 2 shares) and 3.42 million options (Tranche 2 options) to raise $1.7 million (together the Tranche 2 placement).

The Tranche 1 shares will be issued without prior shareholder approval out of the company’s 15 per cent annual placement capacity.

The Tranche 2 shares and Tranche 2 options, the subject of the Tranche 2 placement, as well as the Tranche 1 options, will be issued subject to shareholder approval at an Extraordinary General Meeting to be held in late June 2012.

Volta said the funds raised will primarily be used to commence an RC drilling program at the company’s Koro and Ibi Palga gold projects in Burkina Faso where initial auger drilling results have proved promising.

“We are pleased with the support received from sophisticated investors for this fund raising and are eager to further our exploration of the Koro and Ibi Palga gold projects in Burkina Faso with the aim of creating additional value for our shareholders,” Volta Mining managing director David Sumich said in the company’s announcement to the Australian Securities Exchange.