Perth-based West African gold miner Azumah Resources has completed a $30 million capital raising to accelerate development of its 1.2 million-ounce Wa gold project in Ghana.
Perth-based West African gold miner Azumah Resources has completed a $30 million capital raising to accelerate development of its 1.2 million-ounce Wa gold project in Ghana.
Azumah raised the funds via an institutional placement of 50 million shares at 60 cents a share to national and overseas investors.
The capital will be used to fund a 250,000 metre drilling blitz on new projects and extensions to existing mineralisation at the project..
Azumah has explored less than 10 per cent of its 3,100 square kilometre landholding to build its present open-ended 1.2 million-ounce gold inventory.
In a statement to the Australian Securities Exchange, Azumah said, "A feasibility study is due for completion in first quarter 2011."
"Production is scheduled to commence in 2012."
See company statement below:
West African gold company Azumah Resources Ltd (ASX: AZM) is pleased to announce that it has raised $30 million at 60c a share through a placement to national and overseas institutions to accelerate development of its 1.2 million-ounce Wa Gold Project in Ghana's emerging north west gold province.
This will include a 250,000m drilling blitz which will see Azumah target both new prospects and extensions to existing mineralisation. Drilling will resume this week with a strong flow of assay results expected to begin shortly after.
The enormous exploration opportunity at Wa is highlighted by the fact that the Company has explored less than 10 per cent of its extensive 3,100sqkm landholding to build its present open-ended 1.2 million-ounce gold inventory. Its licences encompass 150km of
highly prospective Birimian greenstone terrain, which is now widely recognised as hosting some of the largest gold deposits in West Africa and the World (Figure 1. Table 1).
The capital raising comprises 50 million shares at 60c per share and has been allocated mainly to North American, European and Australian institutional clients of Toronto-based Clarus Securities Inc. and Australian-based BGF Equities, with Azumah's largest shareholder, Macquarie Bank, also participating. It will lift Azumah's cash position to $40 million.
The placement is subject to shareholder approval with a general meeting proposed for late November.
This capital raising, which is 50% above the price of Azumah's previous issue, is consistent with the Company's strategy of broadening its institutional shareholder base in the lead up to the development of a 70,000oz a year-plus gold mining operation. A feasibility study is due for completion in first quarter 2011 and production is scheduled to
commence in 2012.
Azumah advises that this announcement lifts the trading halt in the securities of Azumah
Resources Limited.
