Ashanti Gold Corp (CSE:AGZ) (OTCMKTS:GULSF) is set to raise half a million dollars through a private placing for exploration at its Kossanto East property in Mali.
The West Africa-focused gold explorer's flagship project is Kossanto East, which has the potential to be similar to other major gold deposits in the region owned by Randgold, IAMGold and AngloGold Ashanti.
The Vancouver-based company will place up to 10 million units at $0.05 each for gross proceeds of up to $500,000.
Each unit consists of a company share and one-half of a share purchase warrant.
Each warrant entitles the holder to buy one additional share for two years at $0.08 each.
"The net proceeds from the offering are intended to be used to finance exploration costs and data analysis on the Kossanto East property in Mali as well as for general corporate purposes," the company said in a press release.
Kossanto East lies on the prolific Kenieba belt of Mali, which hosts such deposits as Loulo, Fekola and Sadiola.
Ashanti is also working to advance, together with its earn-in partners, the Anumso project and the Ashanti belt project in Ghana, which are near adjacent to the Akyem deposit.
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