-- Kobo Resources (KRI.V), up 9% on last look, on Thursday said it is raising $5.53 million in a private placement of shares it expects to close next week.
The company said it will place up to 16.5-million shares priced at $0.335 each in the financing.
Proceeds will be used to advance the development of the Kossou Gold Project and to initiate drilling at the Kotobi Permit, both in Cote d'Ivoire.
Kobo hired an independent firm to prepare a maiden mineral resource estimate (MRE) for Kossou, with delivery targeted for the third quarter of this year. The MRE represents a significant milestone in the advancement of Kossou toward a defined gold resource, underpinned by over 41,000 meters of diamond drilling completed since 2023 across the Jagger, Road Cut, and Kadie Zones, a statement said.
To accelerate drilling ahead of the MRE, Kobo will mobilize a second drill rig to site within the next 10 days.
The company has also mobilized drill pad preparation equipment to the Kotobi Permit. A drilling contract is expected to be signed next week, with drilling to follow on pre-identified targets shortly thereafter.
"With the private placement expected to close next week, we will have the capital in place to execute on a busy and important period for the company" said chief executive Edward Gosselin.
Kobo Resources shares were last seen up $0.035 to $0.31 on the TSX Venture Exchange.
Price: $0.30, Change: $+0.03, Percent Change: +9.09%