Alba Mineral Resources raises £1.3m to advance portfolio
The proceeds, which were raised at a price 4 times higher than the price of money raised last month, will be used to accelerate several activities across Alba’s product portfolio including:
Surface drilling program at the Clogau Gold Project
Preparations for a 2021 drilling programme at Thule Black Sands Project
Preparations for a 2021 drilling programme at Amitsoq project in Greenland
The proceeds from the placing will also be used for general working capital purposes, it said.
“We are pleased to have received this significant support from investors, which is a validation of the strength of our mining portfolio,” said Executive Chairman, George Frangeskides.
He added, "This funding will greatly strengthen our balance sheet and enable us to execute our plans for an ambitious surface drilling programme at the Clogau-St David's Gold Mine”.
Shares in Alba Mineral Resources have more than doubled over the past two weeks to open at 0.35p, 27% higher than the placing price.
ALBA price chart
The group recently shared plans to start mining at Clogau, which was previously closed for 30 years, after an analysis of 1,200 soil samples from known mines showed potential to find new gold sources in the county, as reported by the BBC this month.
Source: ALBA RESOURCES
The drilling and bulk sampling programme is progressing well at Clogau-St David's, with two drill holes completed so far for a total of 125m with the third hole currently at over 66 metres, and around eight tonnes of material collected from three of our bulk sampling targets so far."
This, when combined with the fact Gold prices hit record levels in August, topping $2,000 (£1,527) an ounce for the first time, underpins investor appetite for ALBA.
Alba said the drilling and sampling programme at Clogau is expected to run until the end of the month with testing on the results to ake place after. If the results indicate adequate quantities and grades of gold, Alba will plan to further explore and reopen the mine.
In addition, the raise will enable the Company to set in motion preparations for drilling at Alba's high-grade Amitsoq graphite project, in southern Greenland, as well as for Resource expansion drilling at the Company's Thule Black Sands Project in northern Greenland.
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