JOHANNESBURG (miningweekly.com) – Dual-listed West African Resources has entered into an agreement with Sprott Capital Partners to act as lead underwriter for the purchase of 46.8-million ordinary shares at C$0.32 apiece, to raise C$15-million.
The underwriters will also have the option to acquire up to an additional seven-million shares for C$2.25-million, bringing gross proceeds to C$17.25-million.
West African will use the proceeds to advance the 894 000 oz Sanbrado gold project, in Burkina Faso, including ongoing exploration drilling on the property.
The miner will also use the proceeds to advance an updated resource study, revised feasibility study, as well as for general corporate and working capital purposes.
The 100%-owned Sanbrado project is forecast to produce 150 000 oz/y of gold over the first three years and 93 000 oz/y for the remaining nine-year mine life at an all-in sustaining cost of $708/oz over the first three years and $759/oz thereafter.