Awalé Resources (TSX-V:ARIC) has closed the final tranche of its previously announced strategic financing, raising C$20.7 million ($21 million) from three major mining companies.
The company completed the second and final tranche through Newmont Ventures, a subsidiary of Newmont (NYSE:NEM), which subscribed for 1.98 million shares at C$0.85 per share for gross proceeds of C$1.69 million.
The financing involved three investors — Predictive Discovery (ASX:PDI), Fortuna Mining (TSE:FVI), and Newmont — with the company issuing 24.32 million shares in total for gross proceeds of C$20.67 million.
Following completion, Newmont holds 11.68 million shares, representing approximately 8.2% of Awalé’s issued and outstanding shares. The gold major previously held 9.7 million shares and 1.45 million warrants before the final tranche.
CEO Andrew Chubb says the company welcomes Newmont’s decision to maintain its ownership position in Awalé.
“As the world’s largest gold producer, Newmont’s continued backing through its ongoing funding of the Odienné joint venture and its commitment as a strategic shareholder is a strong endorsement of the quality and long-term potential of the Odienné Project,” Chubb says.
Awalé now has more than C$36.5 million in cash following the investments from the three shareholders.
Proceeds will primarily advance exploration activities across Awalé’s 100%-owned properties at the Odienné Project in Côte d’Ivoire. The project spans 2,346km² across seven permits, including 797km² held under the Awalé-Newmont JV.
The Odienné Project hosts an initial inferred mineral resource estimate of 1.71 million ounces gold equivalent across the BBM, Charger, and Empire deposits, totalling 32.4 million tonnes at 1.33 grams per tonne gold and 0.33% copper.
Awalé manages exploration activities across the JV area, with funding currently provided by Newmont Ventures under an exploration agreement signed in May 2022.
No warrants were issued and no commission was paid in connection with the final tranche. All securities are subject to a statutory hold period of four months plus one day from their respective dates of issuance.
The offering remains subject to final TSX Venture Exchange acceptance. Following completion, Awalé has 143.31 million shares issued and outstanding.
Awalé Resources is a mineral explorer focused on discovering gold and gold-copper deposits in Côte d’Ivoire.
Write to Paula Fabe at Mining.com.au
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