Chalice Gold Mines (ASX: CHN) has raised $9.6 million through a private share placement in order to fund further exploration and development of the company’s projects in Eritrea on the Horn of Africa.
The company has placed 32 million shares at $0.30 and has received strong support from investors.
Chalice’s Zara Project, in Eritrea, hosts the high grade Koka Gold Deposit with a JORC Indicated and Inferred Resource of five million tonnes at 5.3 grams per tonne gold for 840,000 ounces gold.
The company completed a Feasibility Study at the deposit this year targeting development.
The project consists of six contiguous licenses granted covering an area of 615 square kilometres, around 160 kilometres northwest of the capital, Asmara.