Azumah raises funds for Wa

PERTH (miningweekly.com) – Gold developer Azumah Resources has launched a one-for-five nonrenounceable rights issue to raise A$2.3-million.

The rights issue will be priced at 2c a share, which represents a 20% discount to the company’s 30-day volume-weighted average price on the ASX, and a 28.5% discount to the last closing price.

“The rights issue enables shareholders to add to their existing shareholding at a generously discounted and broker fee exempt price at a pivotal point for the company as it sets out to boost resources and reserves,” said Azumah MD Stephen Stone.

The funds raised through the rights issue would be used to strengthen Azumah’s ability to deliver on a variety of initiatives in the coming months at its Wa gold project, in Ghana.

Azumah this week signed a term sheet with private equity group Ibaera Capital worth A$17-million, under which the Perth-based equity group would spend an initial A$14.3-million on the Wa project within a two-year period, to earn an initial 42.5% interest. If additional funds are required to achieve the joint venture objectives, Azumah could elect not to participate in the funding, leaving Ibeara to sole fund the next A$2.8-million to earn an additional 5% interest in the project.

“With the additional support to come from the earn-in deal struck this week with Ibaera, we will be able to accelerate the overall development of the project,” Stone said on Friday.