West African raises $35m

Scarborough-based West African Resources has tapped investors for $35 million via a capital raising to progress its Sanbrado gold project in Burkina Faso.

Under the placement, West African has issued 109 million shares at 32 cents each, with Hartleys and Sprott Capital Partners acting as lead manager to the placement.

Euroz, Cormack Securities and Macquarie Capital Markets Canada were co-managers.

The funds raised will allow the company to begin pre-development activities at Sanbrado, including underground access to deposits, on-site water storage for construction and an upgrade of camp facilities.

“Accessing M1 South (deposit) from the underground earlier will enable infill and extensional to continue in a more targeted and cost-effective manner,” managing director Richard Hyde said.

“WAF is now well positioned to deliver an updated feasibility study incorporating concurrent open-pit and underground mining this quarter, and press on towards the development of the Project later this year.”

Mr Hyde also said the placement would also allow the company to maintain its exploration program.

“We are on track to deliver an updated mineral resource estimate this quarter, as well as the results of updated feasibility study incorporating open-pit and underground mining,” he said.

“The feasibility study will integrate the high-grade gold from M1 South into the mine plan, which is expected to deliver transformational changes to the annual production, cost profile and life of mine.”

Shares in West African were up 1.45 per cent at 35 cents each at 1230pm AEDT.