- West African Resources (WAF) receives firm commitments to raise $126 million through a placement of 101 million shares at $1.25 each
- The funds will go towards WAF’s Taurus principal repayment, Kiaka cash payment and final cash payment of the Toega acquisition
- Following this, a second tranche of the placement is expected to take place in mid-December, representing an issuance of up to $140,000 of new shares to the directors of the company
- Additionally, WAF intends to raise a further $10 million through a share purchase plan at $1.25 per share
- West African Resources dropped 6.81 per cent, trading at $1.30 at 10:50 pm AEDT
West African Resources (WAF) has received firm commitments to raise $126 million.
The commitments for Tranche 1 come from institutional and sophisticated investors for the non-underwritten placement of 101 million shares at $1.25 each.
The company said it received strong support from both domestic and offshore institutions for Tranche 1, with demand exceeding the number of shares available.
The funds from the placement are set to go towards the company’s Taurus principal repayment, Kiaka cash payment and final cash payment of the Toega acquisition, exploration programs and working capital.
The new shares are expected to settle on November 3 and begin trading on the ASX on November 4, ranking equally with existing shares.
Following this, Tranche 2 of the placement is expected to take place in mid-December, representing an issuance of up to $140,000 of new shares to the directors of WAF.
“We are pleased with the positive response received to the placement and look forward to closing the Kiaka and Toega acquisitions and carrying out the development of these quality gold projects,” Executive Chairman Richard Hyde said.
“With the addition of Kiaka to existing operations, WAF aims to a be a +400,000ozpa gold producer by 2025.”
The company said it also intends to raise a further $10 million through a share purchase plan at $1.25 per share.
West African Resources has dropped 6.81 per cent, trading at $1.30 per share at 10:50 pm AEDT.