"We are pleased to announce the £4.7 million placing that will allow the company to strengthen its working capital and cash positions and to continue developing the highly promising Gadzema site in accordance with our long term strategy,” ACR chairman Roy Tucker said.
“We are delighted to have received significant demand for the Placing Shares, both from our existing investor base and from new shareholders in the UK and in Canada,” Tucker said.
Following admission of the new shares to trading on AIM, ACR’s total issued share capital would be 453,336,451 ordinary shares, with the placement shares representing approximately 17 percent of the company’s enlarged issued share capital.
The Gadzema Gold Project, located in Zimbabwe’s Midlands province, is presently ACR’s flagship development. The exploration programme has so far discovered 912 000 troy ounces of gold at the Gadzema site.
The company has a long-term target of two million ounces of gold at the exploration site by December 2012. The project area also includes the Giant Mine, which has had past production of 560 000 ounces of gold until the mine's collapse and closure in 1967.
ACR is also pursuing other exploration activities at the Pickstone-Peerless Gold Project, a brownfield site with past production in excess of 400 000 ounces that has a potential resource of 513 000 ounces.
Post published in: Business