Mr. James Longshore reports
XTRA-GOLD PURCHASES ITS SECOND DIAMOND DRILL RIG AND ANNOUNCES WARRANT EXERCISE
Xtra-Gold Resources Corp. has provided the following update on the Kibi gold project.
The company has purchased a second diamond drill rig to expand its drilling activities. With the recent increase in gold prices, management views the purchase of the new rig as an important step in accelerating the company's exploration efforts with the goal of significantly expanding the maiden discovery.
Following input from the company, the new rig was custom designed and manufactured by Odyssey Drill Rigs, of North Bay, Canada, incorporates an Atlas Copco CS1000/P4 model drill mounted on a Morooka MST800 crawler and is projected to be able to drill to a depth of approximately 700 metres.
In addition, on Feb. 25, 2020, 885,000 share purchase warrants were exercised at a price of 50 cents for gross proceeds of $442,500. These funds will be used for the purchase of the new rig (including spare parts and consumables). After the exercise of these warrants, the company has no other warrants outstanding. The working capital position of the company is now approximately $7-million in cash and liquid assets, sufficient to fully finance current exploration activities with its two in-house drill rigs for 2020 and 2021.
About Xtra-Gold Resources Corp.
Xtra-Gold is a gold exploration company with a substantial land position in the Kibi gold belt. The Kibi gold belt, which exhibits many similar geological features to Ghana's main gold belt, the Ashanti belt, has been the subject of very limited modern exploration activity targeting lode gold deposits as virtually all past gold mining activity and exploration efforts focused on the extensive alluvial gold occurrences in many river valleys throughout the Kibi area.
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