Noricum Gold raises GBP1m in placing for Georgia exploration

Noricum Gold has raised £1m through the placing of 1.25bn shares to fund the development of its Bolnisi project in the Republic of Georgia.

The European-focused base and precious metals exploration and development company placed the shares at 0.08p each, which is an 11% discount to the closing price on Wednesday.

Noricum said the funds raised will allow it to develop early stage production opportunities from two starter pits identified at the Tsitel Sopeli and Kvemo Bolnisi project areas.

The presence of significant gold mineralisation at both Tsitel and Kvemo has been confirmed through previously announced high-grade historic trench and diamond drill results.

Chief executive officer Greg Kuenzel said: “We have been busy drilling at Kvemo Bolnisi, which will provide us with near term news flow, and will soon move to Tsitel Sopeli.

“Considering that we do not need to build processing infrastructure, we are confident that the operating costs will be low, and look forward to providing more detail on this as we firm up our production plans in the coming months.”

Noricum also issued 63m new ordinary shares, also at 0.08p each, to consultants of the company in lieu of fees owed to them.

At 1332 GMT, Noricum shares were down 0.1% to 0.09p.