- West African Resources (WAF) closes a share purchase plan oversubscribed by more than triple its $10 million target
- The company says it received subscriptions for more than $30 million worth of new shares, meaning it will now scale back applications
- WAF Chair Richard Hyde says the company will use the cash boost to help fund its recently-announced purchase of the Kiaka gold project in Burkina Faso
- The share purchase plan is part of a wider capital raise under which the company tapped institutional and sophisticated investors for roughly $126 million through a placement
- Shares in West African Resources are up 1.12 per cent at $1.35 at 1:04 pm AEDT
Gold miner West African Resources (WAF) has closed a share purchase plan oversubscribed by more than triple its $10 million target.
Under the plan, eligible shareholders were given the chance to buy up to $30,000 worth of new shares at $1.25 a pop — a discount of roughly 11 per cent to the company last’s closing share price before the offer was announced.
West African Resources initially said it was hoping to raise $10 million through the share purchase plan but today told shareholders it received subscriptions for more than $30 million worth of new shares.
Nevertheless, the company said it would scale back applications so as to still issue eight million shares to raise a flat $10 million.
WAF Chair Richard Hyde said the company was pleased with the “strong response” to the purchase plan from shareholders and planned to use the cash boost to help fund its recently-announced purchase of the Kiaka gold project in Burkina Faso.
“With the addition of Kiaka to existing operations, WAF aims to be a +400,000-ounce-per-annum gold producer by 2025,” Mr Hyde said.
WAF’s share purchase plan was part of a wider capital raise under which the company tapped institutional and sophisticated investors for roughly $126 million through a placement. Shares under this placement were also issued at $1.25 each.
New shares subscribed for as part of the purchase plan are expected to be allotted today and commence trading on Tuesday, November 30.
For shareholders who have had to have their applications scaled back, refunds for their purchases will be processed in early December.
Shares in West African Resources were up 1.12 per cent at $1.35 at 1:04 pm AEDT. The company has a $1.33 billion market cap.