Special Report: Golden Rim Resources will add another $2.7m to its cash reserves thanks to strong support from institutional, sophisticated and professional investors.

This leaves Golden Rim Resources (ASX:GMR) cashed up and in a strong position to continue growing its 1.4-million ounce gold resource at its flagship Kouri project in Burkina Faso.

The company received firm commitments for the issue of 442,622,951 fully paid ordinary shares at 0.61c per share.

As part of the fully subscribed placement, shareholders will also receive one attaching option for every two shares subscribed for that can be converted at 1c per share within two years.

“We are pleased with the strong support for our fully subscribed fund raising,” managing director Craig Mackay said.

“We are pleased to welcome a number of new shareholders and we thank our existing shareholders for their continued support.”

Funds raised from the placement, which will be undertaken in two tranches, will be used for drilling at Kouri, new business development opportunities and working capital.

With COVID-19 restrictions now easing up, Golden Rim has started a 2,500m reverse circulation drilling program.

The first holes will target extensions to the high-grade Diabatou Gold Shoot.

The discovery of the Diabatou Gold Shoot – which remains open at depth and along strike — is significant.

Elsewhere in Burkina Faso, these shoots discovered in granite contact areas can extend vertically for more than 1km and host more than 1 million ounces of gold.

A break in field work during the COVID-19 pandemic gave Golden Rim time to review an extensive geological, geochemical and geophysical data set for the Kouri project.

This review generated an important new geological interpretation which suggests that the ‘contact areas’ between granites and surrounding volcanic rocks could be “favourable depositional sites” for high-grade gold mineralisation.

Indicating just how high grade, a new rock chip sample of 42.9 grams per tonne (g/t) gold was obtained from an artisanal mine shaft located 40m along strike from Golden Rim’s last drilling on the Diabatou Gold Shoot.

“With the easing of the COVID-19 restrictions we are excited to be drilling again at Kouri,” Mackay said.

“We eagerly await the outcome of our next drilling, which has already commenced, and is targeting extensions to the newly discovered high-grade Diabatou Gold Shoot.”

>>NOW READ:  Barry FitzGerald: Investors pivot back to West African gold; these are the small caps to watch


This story was developed in collaboration with Golden Rim, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.