JOHANNESBURG (miningweekly.com) – ASX-listed West African Resources on Wednesday said it has received commitments for a $21-million raising for the continuing development of its Tanlouka gold project, in Burkina Faso.
The funds, raised through the placement of 70-million shares at a price of A$0.30 apiece, allowed further resource and exploration drilling at the project, as well as the fourth-quarter completion of a definitive feasibility study (DFS).
The proceeds will also be used to start early civil works, including the construction of a camp facility, ablutions and water storage facilities, besides others.
“We will accelerate the drilling programmes with the aim of including further high-grade mineralisation in the next resource update,” said West African MD Richard Hyde.
It also enabled the gold developer to strengthen its balance sheet and fully repay its $5-million debt facility with Macquarie Bank ahead of the maturity date.
Post the completion of the raising, the company will have $30-million in cash at bank.