Birimian (ASX: BGS) has emerged from a trading halt this morning with news of a A$12 million placement, which will fund advancement of the company’s 100%-owned Goulamina lithium project in southern Mali.
The company has already received commitments from investors and will issue 31.7 million shares at A$0.38 each to raise the A$12 million (before costs).
“The high levels of demand received from well-regard institutional and professional investors demonstrates strong support for the Goulamina lithium project,” Birimian chairman James McKay said.
He added the company had confidence in the project and believed it to be “world-class”.
Once it has received the funds, Birimian will undertake resource expansion, complete a revised pre-feasibility study and kick-off a definitive feasibility study.
Earlier this week, Birimian reported it had completed 96% of its 5,000-reverse circulation drilling program at Yando, Danaya and Sangar prospects.
Early assays from Yando have intersected primarily shallow lithium grading up to 1.95%.
Better results from the program were: 23m grading 1.63% lithium, 17m grading 1.95% lithium and 14m grading 1.38% lithium.
The company has applied to the Mali Government to carry out a high resolution airborne magnetics survey over the project area to identify pegmatites outside of currently explored areas. Birimian anticipates it will receive approvals shortly and complete the survey by mid December 2017.
Goulamina comprises 295 square kilometres of lithium-prospective tenements. Its is about 150km by road to Mali’s capital city Bamako, which is situated on the Niger River and contains a port.
The existing pre-feasibility study that Birimian is hoping to update, projects a 14-year mine life with operating cash flow between US$575.8 million and US$2.59 billion, depending on the operating scenario Birimian develops.
Goulamina’s current resource sits at 32.9 million tonnes grading 1.37% lithium for 451,000 contain lithium tonnes.
Birimian is also exploring for gold at two nearby projects: Dankassa and Massigiu.