Adamus raises $7.7 million for West Africa gold project

Australian gold producer Adamus Resources has managed to raise $7.7 million investment for its gold project in West Africa.

The money was raised through the private placement of 12 million shares with three existing shareholders, priced at $0.64 per share. These funds will be used mainly to develop the Southern Ashanti Gold Project (SAGP) in Ghana.

"This placement is a strong endorsement of Adamus' value and potential of the SAGP by some of our largest shareholders, including Macquarie Bank and sophisticated investor, Hightime Investments," said the company's managing director, Mark Bojanjac.

"Our SAGP project is at an exciting stage of its development. The feasibility study is now complete, we have confirmed an increase in resource estimates, we have a substantial drilling program in place to further increase our resources and ongoing works are continuing on the ground in Ghana."

Gold resources at the Salman and Anwia deposits at SAGP stand at 17Mt at 2.2 grams per tonne for 1.2 million ounces of gold, measured and indicated.

The company is looking to extend its proven ore reserve.