The Capital Crunch: West African Resources draws US$100 million under loan facility

Gold miner West African Resources (ASX:WAF) has drawn down the final US$100 million ($150.09 million) under a US$265 million secured loan facility with Sprott Resource Lending and Coris Bank International. 

The loan has supported work at the Kiaka Gold Project in Burkina Faso and other corporate purposes. 

West African, which has a market capitalisation of $1.5 billion, has a cash and gold bullion balance of US$320 million as well as substantial unhedged free cashflow remaining to fund Kiaka’s construction. 

Construction is currently 50% complete, with 75% of costs now committed and fixed.

Meanwhile, Alicanto Minerals (ASX:AQI) is conducting a pro-rata non-renounceable entitlement offer to raise $1.6 million. 

The funds will be used to conduct exploration across its existing projects in Sweden, for project generation, and for general working capital. 

Eligible shareholders will be able to purchase one new share for every five shares held as of 26 June at $0.013 each. 

The offer price represents a 31.58% discount to the last closing price of $0.019 and a 23.98% discount to the 10-day volume-weighted average price of $0.0171. 

Subject to shareholder approval, a further $123,000 will be raised via a placement to directors at $0.013 per share. 

Finally, Alma Metals (ASX:ALM) has received $200,000 via the second tranche of a previous placement, which raised $1.77 million to fund drilling at the Briggs copper deposit in Queensland. 

Under tranche two, 25 million shares were issued at $0.008 per share.

Alma, which has a market capitalisation of $11.34 million, will use the funds for further resource extension and infill drilling at the Briggs, Mannersley, and Fig Tree Hill projects across Queensland. 

Write to Aaliyah Rogan at Mining.com.au   

Images: West African Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.