Turaco taps investors for $18m

Turaco Gold will raise $18 million to further accelerate drilling at its Afema gold project, located in eastern Côte d'Ivoire.

The West Perth-based gold miner told the market it would issue 112.5 million fully paid ordinary shares, at an issue price of 16 cents per price.

This placement price represents a 5.9 per cent discount on the company's closing price of 17 cents per share on April 26 - prior to entering a trading halt - and a 6.1 discount to a five-day volume weighed average price.

Argonaut Securities acted as both bookrunner and lead manager of the placement, while Blackwood Capital and Bridge Street Capital Partners acted as co-managers.

This announcement follows on from Turaco's recent decision to divest a number of its Côte d'Ivoire-based assets, in order to place greater focus on Afema.

In addition to offloading its Ferke and Odienne projects, Justin Tremain-led Turaco executed a binding terms sheet with Aurum Resources, which secured its Boundiali South exploration tenement. 

Mr Tremain said the placement would hold the project in good stead.

"The Afema project covers an incredibly well mineralised gold system and is blessed with a long list of drill ready targets," he said.

"We have two rigs operating on site now - and this raising, along with existing cash, allows this work to continue and be accelerated.

"We are fortunate to continue to receive overwhelming support from our shareholders, for which we thank them, and welcome several leading Australian and European institutional investors as new shareholders.”

Turaco acquired a 51 per cent stake in Afema last year and has a right to increase its interest up to 70 per cent in due course. 

As of 11.05am, Turaco was trading at 18.5 cents per share, up 9 per cent.