Gold-focused explorer and developer Siguiri Gold has opened its initial public offering (IPO), which is set to raise between $8 million and $10 million.
The funds raised will be used to advance exploration at its wholly owned namesake gold project in Guinea, West Africa. The company is working towards a maiden resource in the first half of next year.
Funds will also be used for purchasing a diamond drill rig, in-country costs and general working capital.
The offer will close on 6 August 2024 at 5pm AWST. Siguiri Gold will be listed on the ASX under the ticker code SGD.
The Siguiri Gold Project lies within the Birimian Greenstone Belt, which contains more than 300 million ounces of gold and hosts several multi-million-ounce gold mines and projects. The project covers 148km2 across three tenements with more than 33,000m of drilling conducted to date.
Chairman Michael Minosora says the company’s board has “significant expertise and experience” in Guinea and the African gold exploration industry and will ensure the funds raised will cost-effectively progress the business.
“The Siguiri Gold Project in Guinea is an advanced exploration project which has already delivered exciting drilling results for the company,” Minosora says.
“We are targeting a bulk-tonnage, at surface open-pit mining operation at the project, which is near the world-class Siguiri Gold Mine and Lefa Mine.
“With gold prices reaching all-time high prices in 2024, now is an opportune time to invest in an emerging gold company like Siguiri Gold with an advanced exploration asset and clear development strategy.”
Siguiri launches its $10 million IPO at a time when the gold price has been soaring, as reported by Mining.com.au.
Gold’s continued bull run has analysts revising their predictions for the next couple of years upwards.
The safe haven metal continues to hit new records, last week rising to over US$2,480 ($3,700) an ounce on anticipated interest rate cuts and following an assassination attempt on former US President Donald Trump.
Following the latest spike, Shaw and Partners upgraded its gold price forecast to US$3,000 an ounce for 2025 and 2026, citing monetary policy, US debt, de-dollarisation and geopolitical tensions as key drivers.
JP Morgan, meanwhile, expects the gold price to average US$2,500 in the fourth quarter of this year before heading higher to average US$2,600 an ounce in 2025.
Write to Aaliyah Rogan at Mining.com.au
Images: Siguiri Gold
