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PERTH (miningweekly.com) – Gold developer West African Resources will raise A$35-million through a share placement to fund pre-development work at its Sanbrado gold project, in Burkina Faso.
The company on Monday said that some 109.37-million shares will be placed with existing shareholders and global institutional investors, priced at 32c a share.
The placement will be completed in one tranche under the company’s existing placement capacity, and will not require shareholder approval.
“The demand for the placement is a strong endorsement of the quality of the Sanbrado gold project and our strategy to bring forward early development activities, in particular commencing the underground decline into the high-grade M1 South deposit,” said West African MD Richard Hyde.
“Accessing M1 South from the underground earlier will enable infill and extensional to continue in a more targeted and cost-effective manner.”
The funds raised will be used to start pre-development activities at Sanbrado, including gaining access to the M1 South deposit, constructing on-site water storage and upgrading camp facilities.
Funds will also be used to accelerate drilling at the existing deposits, and to expand the regional exploration programme.
“West African is now well positioned to deliver an updated feasibility study incorporating concurrent openpit and underground mining this quarter, and press on towards the development of the project later this year,” said Hyde.
The Sanbrado project was recently granted environmental approval, with an updated mining licence expected in mid-2018.