MetalsGrove Secures $2.7M to Ignite Gold Exploration in Côte d’Ivoire
MetalsGrove Mining has raised $2.7 million through an oversubscribed placement to kickstart exploration at its Central West Gold Project in Côte d’Ivoire, aiming to unlock value in a prolific gold belt.
- Oversubscribed $2.7 million placement to fund exploration
- Funds to support geochemical surveys and multi-stage drilling programs
- Project covers 1,315 km² along the Abujar–Napié gold trend
- Board participation of $0.52 million subject to shareholder approval
- Placement led by Shaw and Partners Limited at a 25% discount
Strong Capital Raise Signals Confidence
MetalsGrove Mining Limited (ASX – MGA) has successfully secured approximately $2.7 million through an oversubscribed two-tranche placement, underscoring investor confidence in its Central West Gold Project in Côte d’Ivoire. The capital raise, priced at A$0.06 per share; a notable 25% discount to the last traded price; will enable the company to immediately commence exploration activities across a strategically significant 1,315 square kilometre permit area.
Strategic Location Along a Proven Gold Trend
The Central West Gold Project is positioned along the prolific Abujar–Napié gold trend, a corridor that hosts the nearby 0.9 million ounce Napié deposit and the 3.8 million ounce Abujar mine operated by Zhaojin. This proximity to established gold resources enhances the project’s potential, making MetalsGrove’s exploration efforts particularly compelling for investors and the broader market.
Planned Exploration Activities and Use of Funds
The funds raised will be allocated to a comprehensive exploration program, including permit-wide geochemical surveys across the newly acquired Zuénoula land package and accelerated work on other permits once granted. MetalsGrove plans a staged drilling campaign involving air core, reverse circulation, and diamond drilling techniques to test high-potential targets and advance priority prospects toward resource definition. Additionally, the capital will support working capital needs and broader corporate activities, ensuring operational momentum.
Governance and Market Considerations
Notably, the placement includes $0.52 million in board participation, subject to shareholder approval at an upcoming General Meeting, signaling alignment between management and shareholders. Shaw and Partners Limited acted as lead manager and broker for the placement, with associated fees reflecting standard market practice. The company’s Managing Director and CEO, Lijun Yang, emphasized the strong investor demand as a reflection of growing confidence in MetalsGrove’s growth strategy and the promising geology of the Central West Gold Project.
Outlook and Regional Context
Côte d’Ivoire remains an attractive destination for mining investment, supported by political stability, infrastructure, and a skilled workforce. MetalsGrove’s exploration strategy, led by experienced geoscientist Robert Perring, aims to capitalize on this environment by rapidly advancing exploration to delineate potential resources. The coming months will be critical as drilling results and permit approvals shape the project’s trajectory and investor sentiment.
Bottom Line?
MetalsGrove’s successful capital raise sets the stage for a pivotal exploration phase that could redefine its standing in West Africa’s gold sector.
Questions in the middle?
- What initial drilling results will reveal about the project’s resource potential?
- How will shareholder approval of the second tranche impact MetalsGrove’s funding and exploration timeline?
- What are the broader implications for MetalsGrove’s regional consolidation strategy in Côte d’Ivoire?
