Randgold Group subsidiary funding exploration work in West Africa

The international exploration arm of South African-based Randgold Group has completed a private placement to fund exploration and assist its transformation into a publicly traded company.

Randgold Resources raised US$90 million following the placement of 9 million (or 11%) of its shares at US$10 per share. In November 1995, Australian-based North Limited agreed, in principle, to subscribe for 500,000 shares; North American and U.K.-based investors have subscribed for another 500,000 shares. The remainder have been subscribed for by the parent, Randgold Group.

Randgold will use the proceeds to explore for bulk-tonnage, multi-million-ounce gold reserves in Burkina Faso, Mali, Senegal, Ivory Coast, Gabon, Tanzania and Ethiopia. The company hopes to commission a bankable feasibility study on one project before the end of 1997.

The placement also paves the way for a listing on a major North American or European stock exchange, which is expected by the end of 1997.