Mining exploration and development company Hamak Gold and its broker Peterhouse Capital have raised gross proceeds of £350 000, before expenses, from directors, management, existing shareholders and new investors through the issue of four-million new shares at 8.75p each.

The company will use the net proceeds to fund the next phase of drilling at its Nimba licence, in Liberia, and for general working capital purposes.

"The funds raised will enable the company to embark on the next phase of drilling aimed at expanding on the high-grade gold discovery made at the Nimba licence. We expect to mobilise the drill rig and geological team and be drilling in the near future,” executive director Karl Smithson says.

Hamak has entered into a drilling contract with Cestos Drilling to undertake the next phase of drilling work, which is expected to total 1 000 m of core drilling. 

Cestos previously completed the first successful drilling programme for Hamak. 

As part of the engagement, Hamak has issued 359 955 new ordinary shares to a director of Cestos in lieu of certain drilling fees related to the programme.

An initial drilling programme at Nimba intersected near-surface gold mineralisation of 20 m at 7 g/t gold, including 5 m at 22 g/t gold that is associated with a 3 km by 1 km strong gold-in-soil anomaly and outcropping gold mineralised metadolerite unit. 

Hamak also recently announced the completion of an induced polarisation geophysical survey across the discovery site, which has identified a number of priority drill targets. 

The drilling will be aimed at extending the gold mineralisation away from the discovery site.