JOHANNESBURG (miningweekly.com) – Gold developer West African Resources (WAF) has completed a capital raising of $2.1-million to accelerate the development of high-grade oxide mineralisation at the M1 and M3 prospect, at its 100%-owned Tanlouka gold project, in Burkina Faso.
The capital-raising received support from major Australian mining contractor Ausdrill, which subscribed for $1-million under the placement.
WAF would shortly step-up the current drilling program using Ausdrill rigs designed to rapidly bring the M1 and M3 prospects to resource status, with the aim of significantly improving the existing 440 000 oz gold heap leachable probable reserve.
Under the placement, about 31.8-million shares at $0.065 apiece would be issued to “professional and sophisticated” investors, with funding allowing WAF to add “significant” value to the Tanlouka project throughout 2016.
“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.
“This funding will allow us to carryout rapid resource definition drilling at recently discovered high grade oxide gold zones at the M1 and M3 prospects, at our 100%-owned Tanlouka gold project,” commented MD Richard Hyde.
He added that the addition of Ausdrill rigs to the current programme would the group to quickly advance the M1 and M3 prospects, which had recently returned significant results, including 14 m at 4.5 g/t of gold from 36m and 32m at 5.0 g/t of gold, respectively.