02:03 PM EDT, 09/06/2024 (MT Newswires) -- Sanu Gold ( SNGCF ) on Friday said it aims to raise $5 million through the sale of 100-million shares priced at $0.05 each.

Proceeds will be used to advance exploration, including ground geophysics and a 10,000m drilling program that will include Sanu's Diguifara and Daina Gold permits in Guinea, and for general working capital purposes.

Two new strategic investors intend to make lead subscriptions to the private placement. AngloGold Ashanti will invest $1.67 million through the purchase of 33.4-million common shares, for a 14% stake, while Capital DI will purchase 24-million shares for $1.2 million. Capital's strategic investment will represent a 10% ownership post-financing.

According to the statement, AngloGold Ashanti has been producing 200,000 to 300,000 ounces of gold annually from its Siguiri mine in Guinea for the last 25 years. Capital, an international drilling and mining services provider, has deep operational roots in West Africa and Guinea.

"We look forward to working with both AngloGold Ashanti and Capital on unlocking some potential major discoveries on both the Diguifara and Daina permits with up to 10,000m drilling" said chief executive Martin Pawlitschek.

Sanu Gold ( SNGCF ) was last seen up $0.005 to $0.06, on the Canadian Securities Exchange.