Canadian junior miner Desert Gold announced on January 26 plans to raise C$5 million (US$3.6 million) to advance its gold exploration and development projects in West Africa, targeting Mali and Côte d’Ivoire.
The fundraising, via a share sale, will support multiple initiatives, including the SMSZ and Tiegba projects in Mali and Côte d’Ivoire, as well as the commissioning of the first phase of a gravity plant at the fully permitted Barani East gold oxide project in western Mali. In addition, the proceeds will fund resource expansion, exploration drilling, and general working capital needs.
The SMSZ project, Desert Gold’s flagship asset, incorporates the Barani deposit and is planned for phased development. The first phase, currently in planning, envisions a mine producing approximately 130,700 ounces of gold over a projected 10-year life, requiring an initial investment of around $20.4 million. Desert Gold said the planned financing would accelerate this development plan while supporting additional exploration aimed at enhancing the project’s mineral potential.
At the Tiegba project in Côte d’Ivoire, where Desert Gold can earn up to a 90% interest, the funds will primarily support early-stage exploration. The company plans to initiate a prospecting programme to identify drilling targets that could lead to potential discoveries, positioning Tiegba as a key component of its West African portfolio.
The Barani East gravity plant, part of the SMSZ project in western Mali, will be commissioned in phases to process oxide material, contributing to both early production and operational readiness for the larger project. Desert Gold highlighted that the commissioning of the plant will allow the company to validate processing methods, optimize extraction, and prepare for full-scale mining operations.
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Desert Gold said the fundraising is expected to close by the end of February, subject to regulatory approvals. The company emphasized that the funds will provide critical support to its regional expansion strategy, allowing simultaneous project advancement in Mali and Côte d’Ivoire.
The West African gold sector has attracted growing interest from junior and mid-tier mining companies due to the region’s rich mineral endowment, stable geology, and increasingly supportive mining regimes. Mali, in particular, is home to several large-scale gold operations and has been a focal point for international investors seeking to capitalize on gold’s long-term price strength. Côte d’Ivoire has emerged as a promising destination for exploration, with multiple discoveries in recent years highlighting its potential to host high-grade deposits.
Desert Gold’s fundraising effort comes amid a period of renewed optimism in gold markets, with prices supported by global economic uncertainty, inflationary pressures, and ongoing demand from investors and central banks. Analysts have noted that junior miners focused on high-potential, early-stage projects in Africa may benefit from rising investor appetite for gold exposure in regions offering both growth potential and relatively low production costs.
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By mobilizing new capital, Desert Gold aims to advance its development pipeline while positioning itself to capture value from both early-stage exploration successes and near-term production at its flagship SMSZ project. The company said that, upon successful deployment of funds, it expects to strengthen its footprint in West Africa, create operational momentum, and enhance shareholder value over the medium term.
