Chesser Resources is well supported in $8m share placement
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Special Report: Chesser Resources has gathered extra funds to expand its large 20,000m drilling program at its flagship Diamba Sud gold project in Senegal, west Africa.
Sophisticated investors and institutions, both domestic and international, pledged their support for Chesser Resources’ (ASX:CHZ) $8m capital raising jointly managed by Taylor Collison and Canaccord Genuity.
“The level of interest received from new and existing institutional investors significantly exceeded our expectations,” managing director, Mike Brown, said.
Approximately 38 million shares were issued in the heavily subscribed capital raising at 21c per share.
“The placement will enable us to significantly expand the current exploration drilling program at Diamba Sud through the dry season,” said Brown.
The latest capital raising adds to $6.5m the company had in the bank at the end of September following an earlier well-supported share placement to sophisticated and institutional investors
Chesser has intersected widespread intervals of thick, shallow, high-grade mineralisation at its Diamba Sud project, including 44m at 4.37 grams per tonne (g/t) from 18m.
“Initial results have already returned highly encouraging results that extend in multiple directions the mineralised zones identified in previous drilling campaigns, and we look forward to reporting more results as they come to hand,” added Brown.
Thick oxide mineralisation at the Diamba Sud project has been extended by more than 100m in multiple directions from its original mineral discovery at its Northern Arc target.
Deeper drilling at the project has returned multiple mineralisation from structural zones and hydrothermal breccias in fresh rock, including 17.9m at 2.36 g/t gold from 82.3m.
Chesser Resources holds ~300sqkm of highly prospective ground in the underexplored world-class gold region of the Senegal-Mali Shear Zone.
The shear zone is host to several multi-million-ounce gold deposits including B2Gold’s Fekola mine, Barrick Gold’s Loulo-Gounkoto complex, and Anglo Gold Ashanti’s Sadiola mine.
The Diamba Sud project is 7km west of the 5.5 million-ounce Gounkoto mine in Senegal.
This article was developed in collaboration with Chesser, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.