Alecto Raises Funds to Fast Track Matala Gold Mine, Zambia
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Alecto Minerals PLC has raised £665,000 for funds to bring its Matala gold mine in Zambia on stream.
Alecto wants the 400,000 tonnes per year open pit up and running within a year.
A feasibility study has indicated a life of around four years 8 months at $1,200 per ounce gold.
The net present value was put at US$28.6mln and the unlevered IRR (internal rate of return) at 52 percent.
Shares were issued at 0.08p and the equivalent of 18.6 percent of the enlarged share capital.
Mark Jones, chief executive, said that he was delighted by the support shown by shareholders but was disappointed that the share price has not responded better to the opportunity in Zambia.
“However, the board is acutely aware of the importance of maintaining momentum on the ground in Zambia, to build on the excellent start we have already made. There is potentially still huge upside for stakeholders if we get this right,” he said.
Alecto also has joint ventures with Randgold and Cora Gold in Mali while discussions are in progress over a partner for its Kerboule prospect in Burkina Faso.
“With this in mind, we will continue to focus and deliver on our strategy, which I believe will translate into share price appreciation moving forward, “ said Jones.
Source: (May 17, 2016) Proactive Investors
About Alecto Minerals
Alecto Minerals plc is an African focused, gold and base metal exploration company, quoted on AIM, with exploration projects in Mali, Ethiopia and Mauritania.
The on-going development of the Kossanto Gold Project in Mali is the Company’s predominant operational focus and with significant value upside potential evident across the tenure, the Board plans to build on its current independent inferred resource estimated of 6.72 Mt grading at 1.14 g/t Au for an aggregate of 247,000 oz Au with a cut-off grade of 0.5 g/t Au for the Gourbassi target reported in accordance with the guidelines of the JORC Code (2012).
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