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Alecto Minerals plc (LSE:ALO), the AIM quoted mining exploration company focusing on West and East Africa, has said that it has raised £1,500,000, before expenses, through the issue of 100,000,000 new ordinary shares of 0.01p each at 1.5p per share.
The net proceeds of the Placing will be used to further advance the Company’s flagship Kossanto Gold Project in Western Mali, where drilling to increase the maiden JORC compliant resource of 107,000 ounces of gold is nearing completion, as well as for working capital purposes. The resource is only defined over a 500m section of a 900m mineralised strike length defined at one (Gourbassi East) of the three prospective target areas defined at the 207 sq km project area, illustrating that significant exploration upside exists at the project. This has also been demonstrated at the Massakama prospect, which lies in the west of Kossanto, where a significant rise in artisanal activity and workings highlights the high grade nature and potential extent of the gold mineralisation in the area. Importantly previous exploration work at Massakama has already produced drill intercepts up to 8m @ 18.5 g/t.
Application will be made for the Placing Shares to be admitted to trading on AIM and it is anticipated that dealings will commence on 22 January 2014 (‘Admission’). On Admission, the Company will have 688,918,775 ordinary shares of 0.01p each in issue (‘Ordinary Shares’).
Alecto CEO Mark Jones said, “Having recently returned from a site visit to Kossanto in Mali, I am excited with the progress made on the ground as we near completion of our infill and extension drilling programme at the Gourbassi East target, aimed at expanding our current resource as well as opening up the opportunity Massakama provides as an additional target. With this in mind, it has given me confidence to seek additional funds, which have been placed at a 50% premium to the funds raised just two months ago. We take the view that the best possible way to reward shareholders is to commit to a solid exploration plan in West Africa and this fresh investment now allows us the freedom to do this over the next 12 months. Clearly the stronger balance sheet will be highly beneficial for the Company and shareholders as we focus on unlocking the inherent value evident across the three highly prospective gold target areas within the tenure.
“Over the coming months we have a lot to look forward to, at both Kossanto, where we expect regular assays results from Gourbassi East throughout Q1 2014 as well as further updates from the expansive Massakama Prospect and across the rest of our prospective African portfolio which includes a two gold projects which have been joint ventured with Centamin plc and a IOCG project in Mauritania which is now drill-ready.”
