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Papillon Resources Substantial Shareholder Bumps Up Stake To 7.76%

Papillon Resources' (ASX: PIR) substantial shareholder Highland Park S.A. has increased its interest in the company to 7.76%.

Highland Park S.A. acquired a further 6.7 million shares for a total consideration of just over A$5 million between 21 November 2011 and 9 February 2012.

Papillion recently completed an impressive $16 million capital raising from a placement to institutional investors.

The company is now well funded, with around $27 million in the bank, to begin Scoping Studies at the Fekola gold project in Mali, as it moves towards a maiden gold JORC Resource by around mid-2012.

Recently released results from two more diamond holes have returned highlights from the first hole of 57 metres at 10.69 grams per tonne (g/t) gold from 177.3 metres and 16 metres at 2.24g/t gold from 237.3 metres.

Highlighting its strategic location, Fekola is situated in the Mali West regional gold province, which has more than 22 million ounces of gold within 60 kilometres.

Other projects in the vicinity include Randgold Resource's (LON: RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.