Desert Metal, a low-profile Australian explorer, has received overwhelming investor support for its ambitious plan to expand its operations in Côte d’Ivoire, West Africa. The company announced that it had secured almost twice the amount of funding it had sought for its acquisition of gold and lithium projects in the mineral-rich country.
The company had initially aimed to raise A$5 million through a share placement, but due to strong demand, it increased the offer to A$9.2 million. The placement was oversubscribed, with more than 100 million shares issued at A$0.09 per share. The funds will be used to acquire and develop the Séguéla gold project and the Kineta North lithium project, both located in northern Côte d’Ivoire.
Desert Metal’s decision to venture into Côte d’Ivoire comes at a time when the country is emerging as a major mining destination in West Africa. Côte d’Ivoire has a favorable geological setting, a stable political environment, and a modern mining code that encourages foreign investment. The country is already a leading producer of cocoa and cashew nuts and aims to diversify its economy by increasing its mining sector’s contribution to GDP from 3% in 2022 to 6% by 2025.
Gold and lithium are among the most sought-after commodities in the global market, as they are essential for various applications such as jewelry, electronics, renewable energy, and electric vehicles. Côte d’Ivoire has significant potential for both metals, as evidenced by the presence of several major international mining companies operating in the country. These include Canada’s Barrick, which operates the Tongon gold mine; Australia’s Perseus Mining, which operates the Sissingué and Yaouré gold mines; and Canada’s Fortuna Silver Mines, which acquired the Séguéla gold project from fellow Canadian miner Roxgold in 2021.
Desert Metal plans to fast-track the exploration and development of its newly acquired projects, which have shown promising results from previous drilling and sampling campaigns. The Séguéla gold project covers an area of 360 square kilometers and hosts several high-grade gold deposits, with a total resource estimate of 1.4 million ounces of gold. The Kineta North lithium project covers an area of 400 square kilometers and contains several pegmatite occurrences that are prospective for lithium and other rare metals.
Desert Metal’s managing director, Ian Finch, said that the company was delighted with the strong support from investors and the opportunity to enter the Côte d’Ivoire mining sector. He said that the company had a clear strategy to unlock the value of its projects and deliver shareholder returns. He also thanked the Côte d’Ivoire government and the local communities for their cooperation and support.
Desert Metal’s move to Côte d’Ivoire is a testament to the country’s attractiveness as a mining destination and its potential to become a major player in the global gold and lithium markets. With the backing of its investors and partners, the company is poised to make a positive impact on the country’s economy and social development.
Source: MiningNews.net
