article in mining news for blackmarlin

Funds boost for Adamus

Ben Sharples
Wednesday, April 12, 2006

ADAMUS Resources is looking to give the coffers a $A13 million injection to finance a feasibility study at its flagship Southern Ashanti gold project in Ghana and a further 25,000m of exploration drilling.



The gold explorer is set to issue up to 20 million shares at 65c each to undisclosed institutional and sophisticated clients of Euroz Securities to raise the funds.

A scoping study at Southern Ashanti has indicated a 100,000 ounce per annum operation would cost in the order of $US57 million ($A77.3 million), producing gold at cash costs of $286 per ounce.

The Southern Ashanti project has a resource base of 22 million tonnes grading 2.1 grams per tonne for 1.5 million ounces, including in-pit resources of 8Mt at 2.65gpt for 680,000oz – around 90% of which are measured and indicated.

In addition to the feasibility study, Adamus will plough a further 25,000m into the ground at Southern Ashanti in a bid to increase the resource. The company uses Pontil Minerex as its drilling contractor.

This is the third capital raising by Adamus in less than 12 months, with the company netting $2.73 million in March via the issuance of shares at 70c each, and $3.01 million in June after issuing shares at 45c each.

Shares in Adamus hit a 52-week low of 34.5c in September before gaining ground to hit a 52-week high of 85c in February. The stock was off 2c (2.6%) during morning trade to 74c.