Hill End Gold (ASX:HEG) has taken advantage of lower prices in the gold sector, to pick up 13 per cent of the ordinary shares of Bassari Resources Limited (ASX:BSR) for a consideration of just $800,000.
After allocation of the placement shares, Hill End Gold will have 13% of the issued capital of Bassari.
Hill End completed the acquisition of 100,000,000 shares in Bassari Resources, the latter has defined a resource of 11.9 million tonnes at grading 2.6g/t for one million ounces of gold in hard rock resources in Africa.
The placement will assist Bassari in the exploration and development of its advanced gold projects in Senegal and for working capital.
The Bassari gold projects in Senegal are located in the Kedougou-Kenieba Inlier of the Birimian Gold Belt, which has over 55 million ounces of known gold resources.
The placement is in three tranches:
- Tranche 1 of $250,000 for 31,250,000 BSR shares already completed;
- Tranche 2 of $250,000 for 31,250,000 BSR shares already completed;
- Tranche 3 of $300,000 for 37,500,000 BSR shares by 31 August 2013.
Hill End has nominated Philip Bruce to be a director on the board of Bassari.
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