Azumah strikes A$2m deal with Ausdrill
PERTH (miningweekly.com) – Gold hopeful Azumah Resources has inked a strategic alliance with fellow-listed Ausdrill and its contract mining services subsidiary, African Mining Services, to advance the Wa project, in Ghana.
Under the transaction, Ausdrill would invest some A$2-million in Azumah through a two-year converting note, which could be converted into shares at a price of A$0.05 each, at any time prior to the expiry.
Azumah said on Tuesday that the funds would be used to complete the revised study on the Wa project, enabling the company to achieve its key objective of delivering a development-ready gold project as soon as possible.
The junior also had the option to repay the note on expiry and pay periodic interest of 8%/y in cash, or with new shares.
Azumah has also appointed Ausdrill as its preferred contract mining service provider for the Wa project.
“The corporate and project level relationship with Ausdrill aligns its interest with Azumah’s and represents another important building block in our company’s immediate goal of delivering a development-ready gold project,” said MD Stephen Stone.
“The A$2-million investment and alliance is consistent with Azumah’s strategy of having quality companies across a range of capabilities directly involved in its business.”
Azumah and Ausdrill have undertaken to work together to optimise the mining component of the Wa project, and to ensure that the most competitive terms for mining costs were included into the revised study, and to subsequently negotiate mutually satisfactory contracts.
A revision of the Wa study followed a major increase in the mineral resource estimate, which now stood at 2.2-million ounces.
The Ausdrill investment followed shortly on the heels of a A$1-million placement to Indian industrialist Agnivesh Argawal, who brought connections to United Arab Emirates-based gold refiner Fujairah Gold.
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