Australian company Metals of Africa plans to start test drilling at a zinc, silver and lead project on the Mazoe River in Mozambique, after raising US$494,260 from a share issue, the company said.
In the statement, which also mentions the start of prospecting at other projects in Tanzania and Gabon, Metals of Africa said that the test-drilling programme in Mozambique was intended to confirm data that had already been gathered.
The company, which is listed on the Sydney Stock Exchange, issued 7.604 million shares for 6.5 cents per share to professional investors, most of which were already company shareholders. The share price was a 12.3 percent discount on the average price of the last 15 sessions.
The company’s board of directors also plans to get the green light from shareholders to issue more shares in order to raise US$2 million.
The Rio Mazoe project is located in Mozambique’s Tete province and its potential was initially identified in 2001 by BHP Billiton during a geological survey of five countries that cost US$20 million.
The project includes eight exploration licenses and initial tests showed there was a significant probability of zinc, lead and silver deposits. (macauhub/MZ)