Ashanti Gold Corp (CVE:AGZ) is set to bring in up to C$300,000 from a placing of up to 3mln units at C$0.10 each.
The net proceeds are earmarked to pay for resource calculation work for the Kossanto East property in Mali, as well as for general corporate purposes, it said.
Each unit will comprise one company share and one-half of one share purchase warrant. Each whole warrant entitles the holder to buy one additional share for two years for 13 cents.
Last week, Ashanti released new, encouraging drill assays from the Gourbassi West area at Kossanto East.
The assays come from the recently completed 105 hole, 12,283-metre drill programme that tested mineralisation at Kossanto East. The Gourbassi West target consists of gold mineralisation associated with volcanic rocks along a northwest trending structural zone for over 1200m (meters) of strike length.
The results add "important widths to the mineralised zone and support the contention that there are multiple zones of mineralization along stacked thrust faults at Gourbassi West" Tim McCutcheon, the chief executive, had said.