We talk to Jon Forster about the AIM company listing. Cora Gold Limited has raised £3.45 million to develop a portfolio of gold projects focused on two highly productive gold belts in Mali and Senegal in West Africa where historical exploration expenditure totaling US$10 million has uncovered multiple gold targets with drill intercepts.
The Sanankoro Gold Discovery is the primary focus for Cora Gold as it has the potential to develop into a large standalone mine and is located in close proximity to existing gold mines – it is on the same gold belt as AIM listed Hummingbird Resources’ 2.2Moz Yanfolila Gold Project (which is a 34% shareholder of Cora and is due to commence production by the end of 2017) which provides possible treatment routes for early cash flow.
CORA GOLD LTD – FIRST DAY OF DEALINGS ON AIM
Cora Gold Limited, the West African focused gold exploration company, is pleased to announce that its ordinary shares will commence trading on AIM at 8.00 a.m. today under the ticker CORA.L (“Admission”). As part of the Admission process, the Company has raised £3.45 million (US$4.6 million), before expenses, through a Placing and Subscription of 20,928,240 new ordinary shares of no par value at a placing price of 16.5p each implying a market cap of £9.07 million on Admission.
The majority of the net proceeds of the fundraising will be used for a planned exploration programme that will principally focus on the Company’s flagship project, the Sanankoro Gold Discovery in southern Mali (“Sanankoro”), as well as some exploration activities on its other properties. Sanankoro will be the focus of the Company’s activities in the near term with the ultimate objective being to establish a mineral resource estimate.
The Company’s Nominated Adviser is Allenby Capital Limited and its Joint Brokers are Mirabaud Securities Limited and Beaufort Securities Limited.
Overview
· Developing a highly prospective gold portfolio including three principal de-risked project areas (1,700km2) in established gold regions: Yanfolila Gold Belt in Mali and Kenieba Window in Mali/Senegal with multiple, high potential, drill ready gold targets
· Raised £3.45 million on AIM Admission with proceeds to further develop Sanankoro which has the potential for a standalone mine development
o Substantial historical exploration spend by Randgold and Gold Fields since 2001 has provided a comprehensive database of information
o To date detailed exploration has only focused on two zones, of 600m and 1,000m length, within the 14km long gold bearing structures identified from reconnaissance drilling
o Extensive artisanal workings have confirmed the continuity of the mineralisation at Sanankoro
o 15,000m exploration drilling programme planned, prioritising expansion of Sanankoro
· Up to 10,000m exploration programme at additional project areas located near to existing gold mines and which have the potential to host significant new gold discoveries
· Potential routes for early processing of ore:
o 34% shareholder Hummingbird Resources’ (AIM:HUM) Yanfolila Gold Mine (first gold pour Q4 2017) within trucking distance from Yanfolila Project Area
o Sadiola Gold Mine (AngloGold Ashanti-IAMGOLD) within trucking distance of Diangounte Project Area
· Highly experienced and successful management team has a proven track record in making multi-million ounce gold discoveries, many of which have been developed into profitable mines
Jon Forster, CEO of Cora Gold said, “Today is a seminal day for Cora Gold marking our admission to the London Stock Exchange as a West African gold developer and explorer. Our objective is to create value by turning the Sanankoro gold discovery into a mine and the drill ready gold targets at our other project areas into discoveries. We were delighted with the reception to Cora in the lead up to our IPO and having raised £3.45 million we are now funded to further develop our portfolio of highly prospective gold projects in established gold areas, predominantly in Mali.
“Our initial focus will be on our flagship Sanankoro project and with substantial historical data from both Gold Fields and Randgold we believe we have very good potential to increase the scale of the discovery to +1Moz of in-situ gold and create a standalone mine. We have the added benefit of exploring in the shadow of gold mines at two of the project areas, where any new discoveries would be within possible trucking distance, and as such providing Cora with possible routes for early processing of ore puts us in a strong position as we commence our work programme with a view to creating maximum value for our shareholders.”
For further information, please visit http://www.coragold.com
