West African raises $21m for gold project

Scarborough-based West African Resources has tapped investors for a $21 million capital raising to pay off debt and fund ongoing development of its Tanlouka gold project.

West African raised the funds through the placement of 70 million shares at 30 cents each, with the price representing a 7 per cent discount to the company’s five-day volume weighted average price.

The proceeds of the raising will be used to pay off a $US5 million debt facility with Macquarie Bank, and progress exploration work at the Tanlouka project in Africa.

West African plans to undertake early civil works at the project in preparation for full-scale development.

The works include construction of a camp facility, ablutions and water storage facility.

“West African is now in a position to repay the Macquarie Bank debt facility, and focus on finalising the definitive feasibility study at Tanlouka,” managing director Richard Hyde said.

“We will accelerate the drilling programs with the aim of including further high grade mineralisation in the next resource update.

“We now have an extremely strong register of quality institutions from Australia, Canada and the UK.”

Hartleys acted as lead broker to the placement, with Clarus Securities as co-manager.

West African shares were 9.3 per cent higher to 35 cents each at 11:20am.