What's Happening?
Wia Gold, an ASX-listed company, has successfully secured binding commitments to raise A$30 million through the issuance of 100 million new shares priced at $0.30 each. The funds will be directed towards the accelerated development and exploration of the Kokoseb deposit in Namibia, part of the larger Damaran project. This initiative is in collaboration with the State-owned miner Epangelo. The company plans to advance studies and testwork to complete a definitive feasibility study (DFS), alongside permitting and social and environmental activities at Kokoseb. Wia Gold's executive chairperson, Josef El-Raghy, highlighted the significant progress made at the Kokoseb project over the past year, including a mineral resource estimate upgrade to 2.93 million ounces of gold contained within an 89-million-tonne resource grading 1 g/t.
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Why It's Important?
The successful fundraising by Wia Gold underscores the strong investor confidence in the company's strategy to expand the Kokoseb deposit. This development is crucial for Namibia's mining sector, potentially boosting local economic growth and employment. The involvement of both domestic and offshore institutional investors reflects the project's promising prospects and the strategic importance of gold mining in the region. The advancement of the Kokoseb project could enhance Namibia's position in the global mining industry, attracting further investment and fostering sustainable development.
What's Next?
Wia Gold plans to complete a scoping study on the Kokoseb project within the current quarter, with several elements of the DFS already underway. The company will continue its exploration program to expand the deposit, which may lead to further resource upgrades. Stakeholders, including investors and local communities, will be closely monitoring the project's progress and its impact on the region's economic landscape.
