Wia Gold Raises A$16.9 Million Following Resource Upgrade In Namibia

Wia Gold Ltd (ASX: WIA) shares were trading 13% higher intra-day after receiving binding commitments to raise A$16.9 million via a share placement.

The company received strong support from major shareholders and new investors for the placement of shares at A$0.08 per share.

Wia Executive Chairman Josef El-Raghy and Non-Executive Director Mark Arnesen showed their support by subscribing for a total of A$900,000 of the placement.

Focus on Kokoseb gold discovery

Funds raised from the placement will primarily be used for ongoing drilling of the Kokoseb gold discovery in Namibia.

Drilling at Kokoseb is ongoing with three drill rigs currently active on site (one diamond and two RC).

The focus of these drilling activities is two-fold – aggressive further resource growth and classification upgrade.

Wia will also use the funds to advance broader exploration activities at its Cote d’Ivoire projects.

Potential for further growth at Kokoseb

The Kokoseb Mineral Resource Estimate (MRE) was recently increased by 63% to 2.12 million ounces of gold.

Read: Wia Gold Limited Increases Multi-Million Ounce Gold Bounty In Namibia

Interestingly, the journey from “greenfield discovery” to a 2 million-ounce+ gold resource has occurred in the space of 3 years.

El-Raghy said: “Our technical team has invested in exploration of this discovery extremely efficiently, as evidenced by our very low US$2.80 per ounce overall discovery cost to date at Kokoseb.”

He said that following the recent MRE increase, Wia still has multiple avenues to deliver substantial further growth in the Kokoseb deposit.

 

 

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