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Ampella in $6.5m IPO for Africa projects
Email Print Normal font Large font June 17, 2007 - 4:44PM

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AdvertisementPerth-based zinc and gold explorer Ampella Mining Ltd is hoping to raise $6.5 million from an initial public offering (IPO), capital which will be used to develop three assets in Burkina Faso, West Africa.

Under the IPO, which opens on Wednesday, the miner will offer 32.5 million shares at 20 cents a piece.

Ampella will use the funds to progress its Doulnia zinc and gold project and its Madougou and Donko gold projects, "with a particular focus on the Doulnia zinc project where Ampella's target is to develop a producing zinc operation within five years", the company said.

The Doulnia project covers 247 square kilometres, south of the capital Ouagadougou.

Ampella's director of exploration Peter Williams said the company was focusing on Burkina Faso because the country was under-explored in comparison to neighbours such as Ghana and Mali.

"The area has already attracted some international attention with Australian companies AIM Resources and Gryphon Minerals active in the area, as well as a suite of Canadian explorers... along with the South African major Goldfields," Mr Williams said.

"Our initial focus will be on our Doulnia zinc project where several prospects have already been identified with significant zinc values either from previous drilling or from strong geochemical soil anomalies.

"At the same time, preliminary exploration work and considerable activity by artisinal miners at Madougou is already elevating the importance of that project."

Apart from Mr Williams, who has over a decade's experience in the West African mining sector, Ampella is being headed up by finance director Richard Burden (Burden), a former chief financial officer at LionOre Australia.

Ampella plans to list on the Australian stock exchange in mid-July.