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Azumah eyes $75M cap raise

Azumah Resources’ is weighing up funding options for its share of capital costs for the Wa gold project in Africa with an estimated $75 million in potential equity financing on the cards.

Azumah told its shareholders this week that its pro-rata shareholding in the Company will be diluted should an equity raising go ahead and all remaining shareholders that have not yet accepted the takeover offer from project partner, Ibaera Capital, should consider doing so ahead of any potentially dilutive equity raising.

The company has also appointed Peder Olsen to oversee the development of the Wa gold project. Olsen recently lead Endeavour Mining’s construction of the US$425m gold mine at Ity in Cote d’Ivoire as Senior Vice President.

Ibaera’s 3.3 cents a share offer is set to close on the 17th December 2019 with all major shareholders and directors now accepting Ibaera’s revised offer.

If Ibaera acquires 90% or more of Azumah, shareholders that have not accepted the offer before the 17th December can have their Azumah shares compulsorily acquired under Australian corporations law – Ibaera’s stake is currently now hovering at around the 86-87% mark.

If the offer closes and Ibeara still holds under 90%, the company has indicated that minority holders may find it difficult to trade their shares in an illiquid market.

With Ibaera also seeking to delist Azumah from the ASX, any remaining minority shareholders would potentially transition to become minority shareholders in an unlisted company without all of the additional shareholder protections that apply to ASX listed companies.

Ibera has previously declared that the 3.3 cents per Azumah share offer as final and represents a 136% premium to the company’s closing price before the original offer was made in September and an 18% premium to the 2.8c per share offer made by Ibaera at that time.

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

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Total Shareholder Return as at 31/12/19

1 year TSR5 year TSR
173rdBlack Rock Mining42%7%
232ndAzumah Resources27%11%
327thBannerman Resources8%-10%
396thBlina Minerals0%0%
401stBlaze International0%-35%
668 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
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Share Transactions

08/11/19
$54k Other
08/11/19
$54k Other
08/11/19
$109k Other
Total value as at the date of the transaction
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Revenue

376th↓Azumah Resources$0
377th↓Bannerman Resources$0
378th↓Black Rock Mining$0
380th↑Blaze International$0
381st↓Blina Minerals$0
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