Tajiri raises $1.9M for work at Reo in Burkina

Vancouver-based Tajiri Resources (TSXV: TAJ) has closed a $1.9 million financing, with the net funds to be directed towards licensing and exploration at its newly acquired, grassroots Reo gold project in Burkina Faso, located on 1,002 sq. km at the convergence of the Houndé and Boromo greenstone belts, which host substantial gold deposits such as Karma, Bissa, Hounde and Mana.

Tajiri issued 13.85 million units priced at 14¢ apiece, with each unit comprised of a share and a transferable share purchase warrant, entitling the holder to buy a share at 24¢ within three years, subject to an accelerated expiry if the closing price of Tajiri’s shares is equal to or greater than 50¢ per share for 10 consecutive trading days.

Some 3.9 million units were placed with private Vancouver-based company Javelin Minerals, which is controlled by Tajiri’s executive chairman Dominic O’Sullivan, bringing his and Javelin’s combined interest in Tajiri to 16.9 million shares, or 23% (24% fully diluted).

Tajiri says it will now start reviewing all historical exploration data completed at Reo by previous project operators Middle Island Resources and Newmont Mining to direct the next round of exploration, which is likely to include trenching followed by reverse-circulation and diamond drilling at the Morley and K4/K5 zones.

While it was previously primarily focused on gold exploration in Guyana, Tajiri exercised its option to acquire a 100% interest in Reo in May 2018 in return for 5 million shares and US$150,000 in cash.

The Reo property has seen US$6 million of work since the mid-2000s.

Tajiri is led by president and CEO Graham Keevil, who is the brother of Atac Resources’ vice-president of corporate affairs and former Northern Miner western editor Matthew Keevil.