West African gold explorer seeks to raise $6m in Australia IPO

JOHANNESBURG (miningweekly.com) - West African gold exploration company Mako Gold is seeking to raise $6-million through the placement of 30-million shares in an initial public offering (IPO) at $0.20 apiece.

For every two shares subscribed for, investors will receive one attaching listed option exercisable at $0.30 on or before three years from official quotation on the ASX.

Mako Gold is currently focused on the discovery and development of high-grade gold deposits in West Africa. Its projects were selected for their potential to host significant gold discoveries within the Birimian greenstone belts, which are host to numerous multi-million gold deposits.

All of the company's projects host extensive artisanal gold mining sites and high-grade rock chip sampling results. The flagship Napié project,, in Côte d'Ivoire, has a combined strike length of 29 km of gold anomalies outlined by soil geochemistry and auger drilling, with multiple drill-ready targets.

Field work is under way on Napié in preparation for immediate post-IPO drilling. Mako Gold has secured a cornerstone IPO investment of $2-million from ASX-listed gold miner Resolute Mining.

Under the terms of the subscription agreement, Resolute has agreed to subscribe to ten-million shares and five-million options under the offer, subject to certain conditions.

Upon completion, Resolute will hold ten-million shares, comprising 13.43% of the total issued share capital of the company assuming the minimum subscription, and 12.59% assuming the maximum subscription.