Sikaman receives portion of securities offering

Sikaman says it has received $6,726,000 from investment dealer Midland Doherty, which will continue to market the balance of the offering.

Sikaman says it will use the majority of the proceeds to meet its financial obligations to bring a large open pit gold mine in Ghana, West Africa, into production in early 1990.

Sikaman and Billiton B.V. of The Netherlands each have a 40.5% interest in the project, while the government of Ghana has a 10% interest and the International Finance Corp. a 9% interest.

Consulting firm Minproc Engineers reports mineable reserves at the project have risen by 54%, to 10.2 million tons grading 0.11 oz gold per ton. Because of the increase in reserves, the partners have decided to boost the size of the milling facility to 990,000 tons per year from 825,000 tons.

Sikaman reports consideration is being given to establishment of separate heap leach operations at various sites on the Bogosu property. A decision on the heap leach operations will be made this summer.

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