JOHANNESBURG (miningweekly.com) – Sierra Leone-focused multicommodity explorer Sula Iron and Gold has conditionally raised £585 000 through a placing of 39-million new ordinary shares of 1p each at a price of 1.5p per placing share with institutional investors.

The proceeds of the placing would be used to progress Sula's gold and coltan exploration activities to predrilling stage over the next six months.

Follow-on exploration to further define drill targets within the Ferensola licence was planned and a ground magnetic survey was expected to be completed by late 2014, with this survey covering both the potential iron mineralisation extension, as well as areas thought to be prospective for gold mineralisation.

Additional exploration activities could include ground magnetic data analysis and interpretation; trenching and geological mapping over the previously identified Dalakuru and Lagunda gold targets; and relogging of Mano River Resources’ drill cores.

Since the realisation of the potential for tantalum and niobium mineralisation within the Ferensola licence and the subsequent successful identification of coltan mineralised alluvial material, the company had quickly moved to advance the understanding and value potential of this third commodity.

Sula had an initial exploration programme currently under way that would complete geological mapping and sampling of the pegmatites to identify the primary source of coltan mineralisation, as well as undergo trenching and pitting over areas of identified coltan alluvial-bearing material.

In parallel with the above exploration activities, a tantalum offtaker had been identified and preliminary discussions had started.

“Having successfully drilled the main banded ironstone formations (BIF) unit within our licence earlier in the year ahead of schedule and under budget, these funds will enable us to take our gold and coltan exploration targets up to predrilling stage.

“We have proven our ability to carry out extensive drilling campaigns with the work on the main BIF unit and we look forward to receiving the mineral resource estimate as planned before the end of the year,” commented Sula CEO Nick Warrell.