Highlights
Placement raises $21 million from existing shareholders and leading institutional investors
Funds raised will ensure WAF can continue to rapidly progress its 100% owned Tanlouka Gold Project and fully repay its debt facility with Macquarie Bank ahead of maturity date
Placement will also be applied to fund further resource and exploration drilling, and the completion of a Definitive Feasibility Study (DFS)
DFS is on track for completion in Q4 2016
Post completion of the placement WAF will have $30m cash at bank
West African Resources Limited (ASX, TSXV: WAF or the “Company”) is pleased to announce that it has received commitments to raise approximately A$21 million through a placement of 70 million shares at a price of A$0.30 per share (“Placement”).
Hartleys Limited is Lead Broker to the Placement, with Clarus Securities Inc. acting as Co-Manager.
The Placement at $0.30 cents per share represents a discount of 7% to WAF’s 5-day VWAP.
WAF’s balance sheet is strengthened by the Placement, which allows for the early repayment of a US$5 million debt facility with Macquarie Bank. The Placement also provides the Company with the capacity to accelerate exploration and resource drilling at the Company’s Tanlouka Gold Project, and completion of the Definitive Feasibility Study on the project.
In addition, the Placement proceeds will be used to commence early civil works, in readiness for development of the 100% owned Tanlouka Gold Project. This work includes the construction of a camp facility, ablutions and water storage facility amongst other items.
Managing Director Richard Hyde commented:
“West African is now in a position to repay the Macquarie Bank debt facility, and focus on finalising the DFS at Tanlouka. We will accelerate the drilling programs with the aim of including further high grade mineralisation in the next resource update.
“We now have an extremely strong register of quality institutions from Australia, Canada and the UK."
Click here for the full ASX announcement
www.westafricanresources.com
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