Cluff Gold secures £15m to increase exploration

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Private placement rustles up funds for gold miner.

Cluff Gold has announced a £9.4 million private placement by Macquarie Bank that will be used to implement a more aggressive exploration drilling campaign.

The mining company will use the cash injection to target what it says is “significant sulphide potential” at Kalsaka and Angovia, while increasing the mine lives at both projects, and further developing the exploration opportunities at Baomahun.

Cluff Gold chairman and chief executive Algy Cluff said: “We have been very encouraged by the exploration results at Kalsaka and Angovia, indicating their potential to host significant oxide and sulphide gold resources. To realise the full potential of these assets in pace with the current market environment, we recognise that it is important to increase our drilling programmes, with a particular focus on the sulphide potential.

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“We are pleased to introduce Macquarie as a long-term cornerstone investor; with its breadth and experience in the mining sector, its investment is a vote of confidence in our company and the quality of our assets. This financing, together with the continued cash flow generated from the existing operations, ensures that the company is well placed to maximise the value of all three of our assets in tandem."

The placing price represents a premium of 14.2 percent to the closing middle market price of 102 pence per share on the AIM Market of the London Stock Exchange.

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