West African raises cash for Toega play
PERTH (miningweekly.com) – Gold junior West African Resources will raise A$126-million in a share placement to institutional and sophisticated investors to repay debt and to pay the cash component of the Toega project acquisition, in Burkina Faso.
The company on Thursday said that it had received firm commitments for the Tranche 1 placement of 101-million shares, at a price of A$1.25-million, under the company’s existing placement capacity.
A second tranche placement of up to A$140 000 would be made to the directors of the company, subject to shareholder approval at the company’s annual general meeting, in mid-December.
In addition to the share placement, West African will also undertake a share purchase plan (SPP), aimed at raising a further A$10-million. The SPP will be launched in November, and will be priced at A$1.25 a share.
West African last year struck a $45-million deal with Canada’s B2Gold to acquire the Toega gold deposit, in Burkina Faso, which has an existing inferred resource of 1.1-million ounces, grading 2.1 g/t gold, and located about14 km from West African’s Sanbrado project.
West African this week also struck a separate agreement with B2Gold to acquire an 81% interest in the Kiaka gold project for $450 000 in cash paid upon execution of the agreement, $45-million (50:50 split between cash and shares) on closing, and $45-million (in cash or shares) on the earlier of the start of construction at the project or completion of a positive feasibility study.
B2Gold will also receive a 2.7% net smelter return (NSR) royalty interest on the first 2.5-million ounces of gold produced, reducing to 0.45% on the next 1.5-million ounces.
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