proactive investors, article on bgs and sprott

Birimian Gold (ASX: BGS) has recently been discovering some near surface high grade gold in West Africa, and has now attracted the U.S. based broking and funds management firm Sprott Global Resource Investments in a $2 million placement.

What is so significant about the capital raising is that the cornerstone investment was made at $0.021, which is a 30% premium to the current share price - representing a strong endorsement in the company's strategy.

The placement is made under Birimian's 15% capacity, and will compromise 95.2 million shares.

Funds will be allocated to rapidly advancing Birimian's new gold discovery at the Ntiola Prospect, within the Massigui Project, southern Mali.

Recent results from Ntiola include; 4 metres at 7.68g/t gold from 45 metres, which is supported by broader intersections such as 22 metres at 3.46g/t gold from 78 metres.

A second phase reverse circulation and diamond drill program is currently underway at the prospect.

Highlighting the prospectivity at the project, gold mineralisation intersected in drilling extends over 500 metres along strike with a down hole thickness of up to 50 metres.

The Massigui project covers 1638 square kilometres and is of the same geological sequence that hosts Randgold Resources (LSE: RRS) six million ounce Morila Gold Mine just 25 kilometres away.



Analysis

Gaining a cornerstone shareholder of the ilk of Sprott Group, at a premium, is a sizeable vote of confidence in the future prospects of Birimian Gold.