West African completes A$34.2m raise

6th December 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed gold developer West African Resources has successfully completed a A$43.2-million capital raise.

The company on Thursday announced that 172.7-million new shares will now be issued, at a price of 25c each.

West African said that the placement would represent some 25% of the current number of ordinary shares on issue, and would be placed under the company’s existing capacity.

The A$43.2-million share placement formed part of West African’s larger plans to finance its Sanbrado project, in Burkina Faso.

The company earlier this week secured a credit approved $200-million finance facility with Taurus Funds Management, and announced a share purchase plan (SPP) which will raise a further A$5-million.

“We welcome the support from new and existing institutional shareholders for the fully underwritten placement,” said West African MD Richard Hyde.

“We also look forward to retail shareholders having the opportunity to participate in the SPP at the same price as the placement. Together with the previously announced Taurus debt facility, the placement will ensure West African is well funded to take Sanbrado through to production in the September quarter of 2020.”