With its latest round of financing complete, Midlands Minerals (MEX-V) is set to get aggressive on its drill program in Ghana.
The company closed a fully subscribed financing deal that raised $7.5 million and brought its total cash on hand up to roughly $10 million.
The offering, which was announced at the end of July, saw Midlands issue 37.5 million units at 8¢ per unit with each unit made up of a share and a warrant.
Midland says the funds will mainly go towards is Sian and Kaniago gold projects in Ghana.
Sian hosts two open-pit mines, Esaase and Ampeha, which were in production from 2000 until the end of 2003.
Along with its neighboring project, Praso, the properties form a 160-sq.-km district delineated by at 16-km gold mineralized corridor.
The ground sits in the northeastern end of the Ashanti gold belt, roughly 30 km northeast of Newmont Mining‘s (NEM-T, NMC-T) Akyem gold deposit.
Midlands holds a 65% stake in Sian, but in early July, announced that it had received a letter from its joint-venture partner, Sian Goldfields, seeking to break up the JV. Midlands says Sian Goldfields has no basis to terminate the agreement.
Sian’s Esaase and satellite zones have an indicated resource of 2.5 million tonnes grading 2.33 grams gold for 192,000 oz., and inferred resources of 2.6 million tonnes grading 2.35 grams gold for 203,000 oz.
In October 2010, SGS Canada compiled a non-compliant update that boosted indicated resources to 5.3 million tonnes grading 1.87 grams gold for 322,100 oz. and inferred resources to 4 million tonnes of 1.69 grams gold for 216,800 oz. of gold.
To date, the JV has drilled 40,000 metres on the project
Mineralization at the project is hosted by mafic volcanics and occurs in a 20-metre wide, potassic-silica carbonate-rich shear zone with lensoid quartz veinlets.
In Tanzania, Midlands has the Itilima gold project, which lies within the Geita-Bulyanhulu-Sekenke trend, which has hosted over 40 million oz. in gold reserves.
On Aug. 12 – the day the financing was completed – the company’s shares were traded for 8.5¢ on 473,000 shares traded. The company’s shares have fluctuated between 8¢ and 28¢ over the last 52 weeks.
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