PERTH (miningweekly.com) – ASX-listed Amani Gold will raise A$25-million through a share placement to fund drilling and metallurgical testwork for feasibility studies at its Kebigada project, in the Democratic Republic of Congo (DRC).
Amani on Wednesday said that it had entered into a nonbinding memorandum of understanding to issue 500-million shares, at a price of 5c each, as well as 250-million free attaching options, exercisable at 7c each within a two-year term.
The agreement was inked with Hong Kong-based Luck Winner Investment, which was established to invest in Amani’s Giro gold project, and would see Chinese investors hold a 28% interest in the issued shares of Amani.
“Subject to completion, this capital raising will put Amani in a very strong position to take the Giro gold project through to completion of feasibility studies and assist with a comprehensive exploration programme at Tendao,” said Amani chairperson Klaus Eckhof.
“The raising introduces a cornerstone investor in the company at an attractive premium for existing shareholders,” he added.
The investment was subject to the completion of a due diligence and shareholder approval.
Amani holds a 55.25% interest in the two exploration licences making up the Giro project, which are less than 30 km from the producing Kibali gold deposits.