• Asara aims to raise $25 million through a share placement to fund gold exploration in Guinea.

• The company will drill at Talico, Banan, and Massan to expand its 923,000-ounce resource estimate.

• This shift follows Asara’s exit from Burkina Faso, where it sold two projects for $2.2 million.

Asara Resources focuses on its Kada gold project in Guinea after selling its Burkina Faso assets. The company sold its Kouri and Babonga projects in April to India’s BIC West Africa for $2.2 million. This move lets Asara concentrate resources on Kada, where it has already identified 923,000 ounces of gold mineral resources.

On July 28, Asara announced investor commitments for a $25 million share placement. Matthew Sharples, CEO of the Australian mining company, said the funds will primarily drive exploration over the next 12 to 18 months. The company plans extensive drilling at Kada to build on its current gold estimates.

The fundraising will involve issuing 500 million Asara shares in two tranches at $0.05 per share. Sharples explained that the capital will finance reverse circulation (RC) and auger drilling at the Talico and Banan targets within the Kada deposit. Asara also plans infill drilling at the nearby Massan prospect and detailed mapping work.

Kada now stands as Asara’s flagship project. Its status grew stronger following the April sale of Burkina Faso projects. Asara expects the new drilling campaign to increase the known gold resource beyond the current 923,000 ounces.

The company has not disclosed specific timelines for the exploration activities but confirmed work will start this year. The completion of the full $25 million share placement depends on shareholder approval, especially for the second tranche, which aims to raise approximately $11 million.

This article was initially published in French by Aurel Sèdjro Houenou
Edited in English by Ange Jason Quenum