03/07/2007 - 14:30

Adamus raises $7.7m in placement for Ghanan gold project

03/07/2007 - 14:30

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West Perth-based gold explorer Adamus Resources Ltd has raised $7.7 million through a placement to fund the development of its flagship Ghanan gold project, the company has announced.

Adamus raises $7.7m in placement for Ghanan gold project

West Perth-based gold explorer Adamus Resources Ltd has raised $7.7 million through a placement to fund the development of its flagship Ghanan gold project, the company has announced.

 

 

The full text of a company announcement is pasted below

Emerging gold producer Adamus Resources Limited (Company) (ASX:ADU) has raised an additional $7.68 million to drive the development of its West African gold project.

The funds have been raised through the private placement of 12 million shares with three of its existing institutional and sophisticated shareholders at a price of $0.64 per share. This represents a premium to current market price and reflects the solid potential of Adamus' primary gold project.

Adamus Resources Managing Director Mark Bojanjac said the funds would be used to advance and expand the Company's flagship Southern Ashanti Gold Project (SAGP) in Ghana.

"This placement is a strong endorsement of Adamus' value and the potential of the SAGP by some of our largest shareholders, including Macquarie Bank and sophisticated investor, Hightime" Mr Bojanjac said.

"Our SAGP project is at an exciting stage of its development. The feasibility study is now complete, we have confirmed an increase in resource estimates, we have a substantial drilling program in place to further increase our resources and ongoing works are continuing on-the-ground in Ghana," Mr Bojanjac said.

Funds will be used to support and expand the extensive drilling program to add additional ounces to the already proven ore reserve, while Adamus also goes through the environmental approval and mine permitting process.

"The Board is highly encouraged by the potential of the regional holdings, which have yet to be drilled and our drilling program is aimed at further improving the economics of the project by building our ore reserve as we move towards production," Mr Bojanjac said.

Total measured, indicated and inferred gold resources of the Salman and Anwia deposits in the SAGP now stand at 1.6 million ounces at 2.1 g/t, with more than 73% now in the measured and indicated category. The current expected mineable reserve totals 730,000oz at 2.65g/t.

The placement is subject to regulatory approval, including approval of the TSX Venture Exchange.

The placement shares will be issued pursuant to applicable prospectus exemptions.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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