- Increases cash and listed investments to A$35 million
- Builds profile and liquidity in North American capital markets � Offering is 100% TSX settlement
- Enables early ordering of long lead items
Gold explorer and developer Azumah Resources Limited (ASX: AZM/TSX: AZR) (�Azumah� or �the Company�) is pleased to announce that it is undertaking a C$20 million (approx. A$19 million) through a short form prospectus offering (�Offering�) of 50,000,000 ordinary shares at an issue price of C$0.40 (A$0.38) each.
The net proceeds from the Offering will increase Azumah�s cash and listed investments to A$35 million and will enable Azumah to maintain its high level of exploration momentum and fully fund its planned 2012, 250,000m drilling programme.
Exploration in 2012 will focus primarily on growing current resources at the Company�s Wa Gold Project, north west Ghana.
Funds will also be applied to the completion of a Feasibility Study for the development of the Wa Gold Project, pre-construction development expenses including long lead items and general corporate purposes.
Casimir Capital Ltd and RBC Capital Markets are acting as joint lead managers and book runners with Argonaut Securities (Australia) and Canaccord BGF as co-managers.
The Offering has been allocated to a number of new and existing institutional investors in North America, Australia and Europe. All shares to be issued will be settled on the Toronto Stock Exchange.
The Offering is subject to the approval of the Australian Securities Exchange, the Toronto Stock Exchange and applicable securities regulatory authorities.
In coming months Azumah will report:
- results of continuing exploration
- the appointment of project design and construction management engineers
- an updated Mineral Resource estimate � due early February 2012
- maiden Mineral Reserves � due March 2012 and,
- a finalised Feasibility Study
"We were extremely pleased with the level of demand in challenging markets from new and existing shareholders who recognise that 2012 will be a defining year for Azumah" said Azumah Resources Managing Director, Mr Stephen Stone.
"This capital raising will facilitate a higher level of trading and liquidity on the TSX on which the Company listed in September 2011 and will also position the Company very strongly to deliver on its key objectives of growing resources and preparing for development of the Wa Gold Project".
Download the full announcement including one table.