PERTH (miningweekly.com) – ASX-listed Amani Gold has revealed details of a A$25-million investment from Hong Kong-based Luck Winner Investment, after the two parties inked a binding subscription agreement.
Under the Stage 1 investment, Luck Winner will invest A$15-million in Amani by subscribing for 300-million shares in the company at a price of 5c each. The share placement will be made under the company’s placement capacity and will settle within two business days of the agreement.
Following the Stage 1 placement, three Luck Winner nominees will be appointed to the Amani board as non-executive directors, with one of the appointees also replacing current chairperson Klaus Eckhof.
Under Stage 2 of the investment, Luck Winner will subscribe for a further 200-million shares, at a price of 5c each, for a further A$10-million investment in Amani. The company will also be issued with 250-million free attaching options, exercisable at 7c each with a two-year term.
The Stage 2 investment was subject to shareholder approval and binding documentation between Amani and the government of the Democratic Republic of Congo (DRC), where Amani was developing its Giro gold project, under which the DRC government will grant a two-year extension for the preparation of a feasibility study for the Giro project, before September 15.
Eckhof said on Friday that the two-staged commitment from Luck Winner demonstrated the company’s commitment to, and the progress achieved to date at the Giro gold project.
“The immediate injection of A$15-million will enable the company to rapidly escalate the further exploration activity required following the recent release of the Kebigada maiden mineral resource estimate.”
The transaction will see Luck Winner hold a 28% interest in Amani.