Zambezi Resources seeks another £5m
Article Date: Apr 13 2005After raising £2.5 million last July at 12p, Zambia-focused copper and gold explorer Zambezi Resources is now putting the final touches on a second placing to raise £5 million to take its projects further. Robert Tyerman reports.
Julian Ford, managing director of Aussie-backed and Bermuda-domiciled Zambezi, says the placing, which is being priced on Friday with broker WH Ireland, should more than make up for a shortfall at the time of the company's float last summer. Ford and his co-directors wanted to raise £5 million then, but a temporary mining market sell-off made this impossible at the time.
All Zambezi's projects are 100 per cent owned and in Zambia, which Ford argues is now coming into its own as a major mineral producer. Next month Zambezi will start drilling at Chakwenga, where recent sampling has returned assays with gold grades from 2.33 grammes per tonne of ore to 19.7 grammes a tonne.
The company is also exploring in the Chongwe copper belt and should start drilling later this year at Mulofwe Dome – where impressive grades have been uncovered in the past – Mpande Dome and Cheowa Neningombe, described as having 'the potential to host a large copper-gold deposit'. In the course of its operations, Zambezi has come across nickel prospects, which it is now addressing, at Mitaba River, Paulwi Hill and Mpata Gorge.
At 17.25p, the shares have speculative possibilities.
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