PERTH (miningweekly.com) – ASX-listed junior West African Resources has raised A$2.1-million through a share placement to accelerate the development of its high-grade oxide mineralisation at the Tanlouka gold project, in Burkina Faso.
The company said on Monday that it would issue some 31.8-million shares, at a price of 6.5c each, to raise the capital.
Australian mining contractor Ausdrill subscribed for A$1-million worth of shares under placement.
“We are pleased to have completed the placement in such a challenging market, which is a credit to the support we received from existing shareholders, Ausdrill and new investors,” said West African MD Richard Hyde.
“This funding will allow us to carry out rapid resource definition drilling at the recently discovered high-grade oxide zones at the M1 and M3 prospects.”
West African was hoping that the definition drilling at the M1 and M3 prospects would add to the existing 440 000 oz gold heap leachable probable reserve recorded at Tanlouka.
Meanwhile, the junior has also announced plans to raise an additional A$500 000 through a share purchase plan, allowing existing shareholders to participate in the raising.
Shareholders would be allowed to subscribe for up to A$15 000 worth of new shares, with the shares to be priced at 6.5c each.