Chalice Gold Mines Limited (“Chalice”) advises that it has raised $4,401,000 (before issue costs) to fund the ongoing development of the Zara Project in Eritrea through the placement of 16,300,000 shares at 27 cents per share (“the Placement”).
The Placement, to institutional and sophisticated investors introduced by Southern Cross Equities as lead manager, will be made pursuant to the 15% allowance under the ASX Listing Rules and is scheduled to be completed on or around September 10, 2009.
The capital raising will increase Chalice’s cash balance to approximately $10.5 million.
All costs and liabilities associated with the merger with Sub-Sahara Resources are now settled.
Dr. Doug Jones, the Managing Director of Chalice said:
“The Placement strengthens Chalice’s balance sheet while it undertakes the scoping study for the Koka Gold Deposit, scheduled for completion by late October 2009, and the feasibility study, scheduled to be delivered in May 2010. Importantly, it will also allow for a substantial program of exploration on the 615 square kilometre Zara Project where we have previously identified numerous gold targets for follow up and where we are already seeing encouraging additional prospectivity for both gold and base metals.”
Chalice also advises that subject to shareholder approval at the Company’s next General Meeting, it will issue Southern Cross Equities and Thomas Weisel Partners Canada Inc, one million unlisted share options each for providing ongoing services to the Company, including the share placement. These options will have an exercise price of 35 cents and expire two years from the date of issue.
Related posts:
- Chalice Plans Share Placement to up Stake in Eritrea Gold Project
- Chalice Gold Mines Close Before Commencing to Look for Funding for Koka Project in Eritrea
- Chalice Acquires Full Ownership of Zara Gold Project, Eritrea
- Chalice Gold adds $450000 to Sub-Sahara Gold Project Eritrea
- Chalice Declares Maiden Gold Reserve for Eritrea’s Koka Deposit
- Chalice Gold Upgrades Regional Potential at Zara Project in Eritrea
- Chalice Gold Mines Entitled to A$5 Million Following Merger with Sub-Sahara Resources
- Chalice Gold Plans Gold Production in Eritrea by 2011
- Eritrea: Audio Broadcast with Executive Chairman of Chalice Gold Mines Limited
that is good to Eritrea, Africa`s hope….
Yes man,Not only for africa and also to the whole world because we will show them how to manage your own sources.Awet nihafash
yes we will show them who we are? and how we do it by ourselves ……we are the winners always !!!!!!! we proud to be ERITREAN!!!!!