7th Oct 2015 14:56
LONDON (Alliance News) - Savannah Resources PLC on Wednesday said it has raised GBP225,000 in cash through a placing of new shares.
In a statement, the company said it has placed 13.3 million new shares with three of its existing shareholders at 1.7 pence per share.
"We are delighted with the continued commitment shown by these shareholders. The funds will be used to support a 1,500 metre diamond and reverse circulation drilling programme on a series of high priority, VMS and gold targets on Blocks 4 and 5 in Oman. We are drilling target types which, by their nature, generally exhibit higher grades which is the key characteristic for successful mine developments," Chief Executive David Archer said in a statement.
"The drilling is designed to allow us both to define a maiden JORC Mineral Resource on Block 4 and to increase our high grade copper Mineral Resource on Block 5," Archer said.
The company said that drilling is expected to begin next week.
Shares in Savannah Resources were down 3.9% at 1.85 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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