Azumah Resources has completed an $11.6 million capital raising, paving the way for accelerated exploration at the company's Wa Gold Project in Ghana.
Azumah Resources has completed an $11.6 million capital raising, paving the way for accelerated exploration at the company's Wa Gold Project in Ghana.
The raising was done through the issue of 27.9 million new shares at 40 cents each, increasing Azumah's working capital to more than $15 million.
"It is very satisfying to have completed this capital raising in such a volatile market," Azumah managing director Stephen Stone said.
"With over A$15 million working capital we can put our foot down even harder on the exploration pedal to increase the 1.1 million ounce gold resource at Wa," he said.
See full statement below
Azumah Resources (ASX:AZM) is pleased to report that it has settled both the Australian and North American components of its A$11.6 million capital raising, paving the way for an acceleration in exploration aimed at increasing the 1.1 million ounce gold resource inventory at the Company's wholly-owned 3,100km2 Wa Gold Project, north west Ghana.
The raising, which was done through the issue of 27.9 million new shares at 40 cents each (see ASX release dated 28th May 2010), increases Azumah's working capital to more than A$15 million.
It also substantially broadens Azumah's shareholder base and, most importantly, introduces the Company to the North American markets, which are active supporters of West African gold explorers and producers.
Azumah has recently escalated exploration and drilling across its key targets, including further rounds of reverse circulation (RC), diamond and aircore drilling completed in the vicinity of its Kunche, Bepkong, Julie and Collette deposits. Results from this work will be released progressively to the ASX over coming weeks. Drilling campaigns continue at these targets and at several other new areas of interest.
In addition, Azumah will shortly commence a 20,000 line kilometre, high-definition (100m traverse spacing, 40m survey height) aeromagnetic geophysical survey to be flown over the key Vapor prospecting licence, which encompasses the Kunche and Bepkong deposits and a substantial area north and south of these. It will also cover the Julie, Collette and Josephine prospecting licences. An induced polarisation ground geophysical survey targeting an area to the west and north of Kunche - Bepkong has just been completed.
The Feasibility Study for the development of the Wa Gold Project remains on schedule for completion by the end of this calendar year. The study is based on a one million tonne-a-year-plus gravity - CIL gold recovery operation, producing an initial 70,000 ounces of gold per annum and expanding to over 100,000 ounces per annum.
"It is very satisfying to have completed this capital raising in such a volatile market," Azumah Managing Director Stephen Stone said.
"With over A$15 million working capital we can put our foot down even harder on the exploration pedal to increase the 1.1 million ounce gold resource at Wa. Azumah has extensive and highly prospective areas which are either partly or completely unexplored and shareholders can look forward to a steady stream of drilling results as this work progresses."
