Pelangio raising $4.0 million for West Africa gold project
Pelangio Explorations Inc. [PX-TSXV, PGXPF-OTC Pink] has announced details of a non-brokered private placement financing that is expected to raise up to $4.0 million. The company said it intends to use the proceeds from the offering for exploration, metallurgical work and land maintenance costs, working capital and general corporate purposes.
Pelangio is a company that is exploring in gold belts in Ghana, West Africa and Canada. The company is focused on its two 100%-owned camp-sized properties: the 100 square kilometre Manfo property, the site of eight near-surface gold discoveries, and the 284 square kilometre Obuasi property, located 4.0 kilometres from and on strike and adjacent to AngloGold Ashanti Ltd.’s [AU-NYSE, ANG-JSE, AGG-ASX] prolific high-grade Obuasi Mine, within the prolific Ashanti Gold Belt in southwest Ghana. The Obuasi mine has produced over 33 million ounces of gold since 1897 and currently holds a resource of 29.5 million ounces of gold at an average grade of 7.64 g/t, including proven and probable reserves of 8.73 million ounces of gold
News of the financing comes after Pelangio recently announced the results of an updated mineral resource estimate for the company’s 100%-owned Manfo Gold Project in Ghana. The latest estimate updates an earlier estimate which was completed in 2013 when gold was trading at US$1,450 an ounce. The new estimate is reported for four gold deposits (including the new Nkansu deposit) using constraining optimized pits at a gold price of US$2,600 an ounce. It defines a total indicated resource of 441,000 ounces of gold at an average grade of 1.16 g/t gold, totalling 11.8 million tonnes.
On top of that is an inferred resource of 396,000 ounces of gold at an average grade of 0.77 g/t gold, totalling 16 million tonnes.
The company said the latest update represents an increase of 126% in estimated gold ounces in the indicated category, plus an increase of 395% in estimated gold ounces in the inferred category in comparison to the previous 2013 estatimate.
“Our focus now shifts to targeted infill drilling, step-out drilling and exploration on both Manfo and Nkosuo to further define and expand the resource base, while advancing technical studies to support future development decisions,’’ said Pelangio President and CEO Ingrid Hibbard.
Meanwhile, the company said it plans to raise up to $4.0 million from an offering that will consist of the sale of units priced at 18 cents per unit. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for 31 cents for two years from the initial closing, which is expected to occur on October 9, 2025.
On Tuesday, Pelangio shares eased 2.8% or $0.005 to 16.6 cents. The shares trade in a 52-week range of 17.4 cents and $0.013.
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