PERTH (miningweekly.com) – Explorer Azumah Resources is hoping to raise A$2-million through a share purchase plan (SPP) to progress its Wa gold project, in Ghana.
The company on Thursday announced that eligible shareholders would be able to subscribe for up to A$15 000 of new shares under the SPP, with the shares to be issued at a 20% discount to the five-day volume weighted average price at the time of the issue.
The SPP will be underwritten by Patersons Securities, which also has the right to offer a top-up placement of up to A$1-million for shareholders wishing to apply for more than their maximum entitlement.
Azumah recently revealed that its joint venture partner Ibeara Capital was approaching its expenditure hurdle under which it would acquire a 42.5% interest in Azumah’s subsidiary which holds the Wa project.
Once Ibeara has reached its $11.25-million spend, Azumah had the option to contribute its pro-rata interest of the approved $2.25-million exploration budget, or could dilute its interest by 5% by electing not to contribute.