• Desert Gold to raise C$5M for West Africa gold projects
• Funds target Mali and Côte d’Ivoire exploration, plant commissioning
• Flagship SMSZ mine aims for 130,700 oz over 10 years

Canadian junior miner Desert Gold said on Jan. 26 it plans to raise C$5 million ($3.6 million) to fund its gold projects in West Africa.

The proceeds from the share sale will be used to advance the company’s SMSZ and Tiegba projects in Mali and Côte d’Ivoire, as well as to commission the first phase of a gravity plant at its fully permitted Barani East gold oxide project in western Mali, the company said in a statement. Funds will also support resource expansion, exploration drilling and general working capital.

The SMSZ project, Desert Gold’s main asset, includes the Barani deposit and is expected to be developed in several phases. The first phase, currently in planning, calls for the launch of a mine with estimated production of 130,700 ounces of gold over a 10-year life, requiring an initial investment of about $20.4 million.

The planned financing is expected to support both the advancement of this development plan and additional exploration aimed at enhancing the project’s mineral potential.

At the Tiegba project, where Desert Gold can earn up to a 90% interest, the funds will primarily be used for exploration. The company plans to launch an initial prospecting program to identify drilling targets for a potential discovery.

The fundraising is expected to close by the end of February, subject to regulatory approval.

Aurel Sèdjro Houenou