Exploration company Wia Gold has received binding commitments to raise A$30 million at $0.30 per share to existing, sophisticated and institutional investors to proceed with work at its Kokoseb gold project in Namibia.

The proceeds will be primarily used for resource development and exploration activities, ongoing project studies, test work and development and permitting, social and environmental activities at the project.

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Additional exploration and project generation capital has been allocated to Wia’s wider exploration portfolio and for ongoing working capital, corporate costs and costs of the placement. Post completion of the placement, the company will have a cash balance of approximately $55 million.

Commenting on the placement, Wia executive chairman, Josef El-Raghy, said: “Wia has made significant progress at Kokoseb over the past 12 months, most recently with the mineral resource estimate upgrade to 2.93 Moz of gold for 89 Mt at 1.0g/t. 1.”

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“The strong support for the placement received from both domestic and offshore institutional investors allows the company to continue with its strategy to expand the Kokoseb deposit via an accelerated exploration programme.”

“The scoping study remains on track for completion in the current quarter with many of the elements of a subsequent definitive feasibility study already underway.”