Turaco Gold (ASX:TCG) is planning to complete the buyout of its Afema Gold Project after securing firm commitments for a $120 million placement.
The placement comprises roughly 200 million shares priced at $0.60 each — representing a 12.4% discount to the 26 October closing price of $0.685 — led by a global long-only resources fund with support from existing institutional shareholders.
Tranche one will raise $97.1 million via 161.8 million shares, while tranche two will raise $23 million through 38.2 million shares subject to shareholder approval at an extraordinary general meeting in early December. Completion of the placement is slated for mid-December.
The company is also undertaking a share purchase plan to raise up to $10 million at the same issue price, open from 2–16 November to eligible shareholders across Australia and New Zealand for up to $30,000 each.
Proceeds will fund the option to acquire Sodim’s remaining 20% interest in Afema in Côte d’Ivoire, subject to the state’s 10% non-contributing interest. The acquisition consideration totals US$30 million in cash, 55.1 million shares, and 36.7 million options, following a US$3 million option fee.
Completion eliminates Sodim’s right to convert to a royalty and extinguishes roughly US$24 million in historical expenditure alongside a discovery payment of up to US$2.5 million.
Sodim retains a 0.33% net smelter return royalty, which Turaco plans to buy back for US$12.5 million before 30 June 2027.
Funds will also support pre-final investment decision activities, exploration, and a Definitive Feasibility Study due in Q2 2027.
Afema hosts a 4.65-million-ounce gold mineral resource estimate.
Managing Director Justin Tremain notes that pro-forma cash will reach about $125 million following the transaction.
“The placement was supported by exceptionally strong demand from existing domestic and international institutions along with select new tier-one international institutions,” Tremain says.
Turaco Gold is an explorer and developer focused on advancing its flagship Afema Gold Project in Côte d’Ivoire.
Write to Paula Fabe at Mining.com.au
Main image: Turaco Gold
