Ghana-focused Soon Mining is looking to raise $3 million through...

Ghana-focused Soon Mining is looking to raise $3 million through an initial public offering priced at $0.20 to commission construction of a processing plant and purchase equipment to commence production of placer gold.

The company will also accept oversubscriptions of 10 million shares to raise a further $2 million.

Soon has entered into a Share Purchase Agreement to acquire Ocean Blue International Limited (OBI) for 125 million shares.

OBI owns 100% of Soon Mining Company Limited, which holds the Kwahu Praso gold concession in east Ghana that hosts a Resource of 7.5 million tonnes of gold-bearing gravel grading 0.63 grams per tonne gold for 152,000 ounces of gold.

A mining licence is in place to establish a small-scale operation.

Parts of the concession sit on the edge of the Ashanti Gold Belt and there is potential for lode gold.

This is based on:

- Results from samples taken from the geochemical soil;
- Structural features based on geophysical date;
- Favourable host rock;
- Geophysical magnetic anomaly zones;
- Data from geological mapping of the targeted area; and
- Presence of old mining pits.

Kwahu Praso also benefits from the availability of infrastructure including grid power, a major highway passing through the south edge of the concession and paved or well packed gravel roads.

An international airport is available in Accra, approximately 200 kilometres away from the concession while port facilities are available at Tema (250 kilometres by road).

The company plans to trade as SMG on the Australian Securities Exchange.

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