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Carbine Resources raises A$2m to fund new Burkina Faso Gold Project

Carbine Resources (ASX: CRB) have reported the completion of a $2 million capital raising by way of a Share Placement with strong support from both existing and new sophisticated and institutional investors.

Funds raised together with cash on hand will be used for the initial exploration program at the company’s new Madougou and Kandy Gold Project located in Burkina Faso West Africa, due to commence in the second quarter of this calendar year.

Funds will also be directed towards the provision of further working capital.

The placement is in accordance with the company’s 15% capacity with the issue of 10 million fully paid ordinary shares at an issue price of $0.20 per share to raise $2m before costs.
Australian stock broking firm Patersons Securities Limited acted as lead manager to the placement.

Non-Executive Director Evan Cranston commented, “Carbine is very pleased with the response from both existing and new institutional investors who participated in the placement, and we welcome those new institutional investors as shareholders of the Company."

"The placement brings Carbine’s cash position to approximately $4m and will take the Company to the next phase of its development," he said.

As announced by the company on Tuesday 23 March 2010, Carbine has restructured its Board and will commence field programs to earn up to an 80% interest in its Madougou Gold Project in Burkina Faso West Africa.

The Board restructure was in line with the company’s new West African gold focus and included the appointment of renowned West African geologist Ms Aoife McGrath as Executive Director- Exploration together with Dr Paul Kitto and Evan Cranston as Non-Executive Directors.

The company believes it has a unique opportunity to earn an interest in what it considers to be highly prospective acreage with the potential for a significant gold resource.

With the exploration program for the Project moving towards the planning stage together with funds on hand from this successful capital raising, Carbine said the following year is set to be a very exciting and progressive one for the company.

With reference to the Trading Halt requested by Carbine on Wednesday 24 March 2010 with respect to this capital raising, the company said it is not aware of any reason why the Australian Securities Exchange would not allow trading to recommence immediately.

Disclosure: The author holds no positions in the company