Scarborough, Western Australia � July 24, 2017 � West African Resources Limited (ASX, TSX-V: WAF or the �Company� or �West African�) is pleased to announce that it has closed its previously announced C$17.25m bought deal private placement (the �Offering�).
Sprott Capital Partners, Cormark Securities Inc. and BMO Capital Markets (the �Underwriters�) were the underwriters for the Offering.
Pursuant to the Offering, the Company issued 53,906,250 ordinary shares. The ordinary shares issued under the Offering are subject to a four month hold period expiring on November 25, 2017, in accordance with applicable securities laws in Canada.
The Underwriters received a cash fee in an amount equal to 6.0% of the gross proceeds of the Offering, and were granted share purchase warrants (the �Broker Warrants�) entitling the Underwriters to purchase that number of ordinary shares as is equal to 2.0% of the aggregate number of ordinary shares sold in the Offering. Each Broker Warrant is exercisable to acquire one ordinary share at a price equal to $0.32 for a period of 24 months after today�s closing. The Broker Warrants and the ordinary shares issuable upon exercise of the Broker Warrants are also subject to a four month hold period expiring on November 25, 2017, in accordance with applicable securities laws in Canada.
The net proceeds received by the Company from the Offering are intended to be used to advance the Sanbrado Gold Project, Burkina Faso. This includes on-going exploration drilling on the property, advancement of an updated resource study, revised feasibility study as well as for general corporate and working capital purposes.
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