Mining company Glencar said today it had made a deal with its bankers that releases the firm from its financial obligations relating to the Wassa Gold Project. It also agreed to place new ordinary shares to raise up to $1.18m.
This will eliminate the firm's debt. Following the share issues and placing, the interests of CDC and Standard Bank will represent approximately 8% of the enlarged issued ordinary share capital of Glencar.
The placing of 35 million new shares at 31c each represents a premium of about 10% to the closing price per ordinary share on the Irish Stock Exchange on September 2 2003. The proceeds of the placing will go towards further exploration in Ghana, Mali and Uganda.
In a statement today Glencar said that in particular it will test by drilling a recently delineated new mineralised zone at the Asheba Project in Ghana, and will conduct a detailed evaluation of data acquired and targets identified on the 1,056 sq km project on Mali's border with Guinea.
Glencar recently acquired an exclusive option to acquire up to an 85% interest in this project, which was previously held by BHP and Randgold Resources, and which is in a very attractive geological area where extensive artisanal mining has taken place.
