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Signature Metals raises $1.7 million through exercise of options

Australian based minerals exploration company Signature Metals has raised $1.7 million through an exercise of options to fund additional drilling at the Konongo Gold Project in Ghana.

During the afternoon trade, shares in the company increased 6.9% to 3.1c.

Managing Director Bill Oliver said this was a strong vote of confidence in the potential of the Company’s Konongo Gold Project in the world class Ashanti Gold Belt of Ghana.

"The funds will be used to carry out additional drilling at the Konongo Gold Project, as well as continuing the assessment and small-scale refurbishment of the existing CIL plant and associated infrastructure," Mr Oliver said.

Following receipt of monies the Company will issue 114.35 million shares to the entities which held the unlisted options. The majority of the options exercised were held by the Chairman of the Company Matthew Wood, Executive Director Tim Flavel and Kaymac Nominees Pty Ltd, a third party.

Mr Wood exercised 45 million options in full for an investment of A$675,000 and now has a beneficial interest in 6.2% of the issued capital of the Company. Mr Flavel also exercised 45 million options for an investment of A$675,000 and following an off market transfer now has a beneficial interest in 2.3% of the issued capital of the Company.

Directors and management now hold 8.9% of the issued capital of the Company.

Mr Oliver said Signature looked forward to further success at the Konongo Gold Project during 2010, with funds available to the Company at 31 December 2009 approximately $3.9 million.



Disclosure: The author holds no positions in the company