Chesser Resources Limited (ASX:CHZ) has received firm commitments for a placement of 42 million fully paid ordinary shares to raise A$1.68 million.
The funds raised will be used to undertake a drilling programme of up to 2,500m RC and 1,000m DD at its flagship Diamba Sud Gold Project in Senegal, West Africa.
The Company would expect to complete this prior to the commencement of the wet season in July.
Managing Director Mike Brown said drill rigs are in-country and available to commence drilling, subject to any restrictions that may be imposed due to the COVID-19 pandemic. All going to schedule, the company would expect to complete drilling prior to the commencement of the wet season in July.
Mr Brown said he was delighted with the strong support the placement had received from investors in the current environment.
“The success of the capital raising reflects the excellent progress that Chesser has made in confirming a high- grade gold discovery at Diamba Sud.
“With cash reserves of approximately A$2 million following the completion of the placement, Chesser is well positioned to undertake a drilling campaign designed to focus on the likely feeder structure identified in the Area A discovery and other high potential zones.”
The raising was completed with strong demand from existing shareholders and a number of new sophisticated domestic and international investors. The new shares will rank equally with existing fully paid ordinary shares. The Placement was managed by Taylor Collison and Bridge Street Capital Partners as co-managers.
Chesser currently holds ~300 sq. km of highly prospective ground in the underexplored world- class, West African gold region in Senegal.
Diamba Sud is the company’s flagship project, covering 53.2 sq. km over the gold-bearing Kedougou-Kenieba Inlier, Diamba Sud consists of two blocks referred to as DS1 in the north and DS2 in the south.
The Project is located two km to the west of the Senegal Mali Shear Zone (SMSZ), a major regional structure and host to numerous multimillion-ounce gold deposits including; B2Gold’s 7.6Moz Fekola mine, Barrick’s 18Moz Loulo-Gounkoto complex and AngloGold Ashanti/IAMGold’s Sadiola and Yatela mines. DS1 lies 7km to the west of the 5.5Moz Gounkoto mine and to the immediate east of the privately owned 0.5Moz Karakaene mine.