Sula Iron and Gold as raised £800,000 to prove up iron and gold mineralisation at Ferensola project in Sierra Leone.Sula, an AIM-listed iron ore and gold exploration company focused on Sierra Leone, raised the capital by way of a placing of 40,000,000 new ordinary shares at a price of 2 pence per placing share with a range of institutional and other investors. Each placing share includes a warrant to subscribe for a further new ordinary share at 3 pence per share, subject to the approval of Sula shareholders. The funds raised will be used to advance Sula’s wholly owned 153 sq km Ferensola project, located in the northern part of the Sula-Kangari Greenstone Belt in Sierra Leone, which is prospective for iron and gold, as well as for general working capital purposes.
“With a strengthened cash position, exciting exploration results in hand and defined development programmes in place, I believe Sula is well set to advance Ferensola and unlock the project’s inherent value,” says Nick Warrell, Sula’s CEO.“Work to date has confirmed that the project is highly prospective for both iron and gold, and we are focused on delineating a maiden JORC compliant iron resource in 2014 and proving up the gold mineralisation. “Interestingly, in terms of our iron exposure, Tonkolili, which is contiguous to Ferensola, has recently been subject to a US$990m proposed strategic investment by Tianjin Materials and Equipment Group Corporation, which values Tonkolili at US$6 billion. This valuation, we believe, further underpins the region’s prospectivity and Sula’s significant upside potential, which we hope to unlock through future exploration.”