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Aug 22, 2016 4:50 EST

West African Resources Limited: Completion of Placement and Appendix 3B

Disclosure NewswireTM

iCrowdNewswire - Aug 22, 2016

 

Perth, Australia – West African Resources Limited is pleased to announce that it has completed the placement of 70,000,000 fully paid ordinary shares (“Shares”) to domestic and international institutional and sophisticated investors (“Placement”). The shares are to be allotted on 18 August 2016.

 

The Placement was undertaken at an issue price of $0.30 per new Share.

 

The funds raised will be applied towards:-

 

  • accelerated exploration and resource definition at the Company’s 100% owned Tanlouka Gold Project (“Project”);

 

  • completion of a Definitive Feasibility Study on the Project;

 

  • commencement of early civil works at the Project, such as the construction of a water storage facility;

 

  • repayment of the US$5 million debt facility held with Macquarie Bank Limited;

 

  • ablutions and camp facility; and

 

  • for general working capital purposes.

 

The notice required pursuant to ASX Listing Rule 7.1A.4(B) & 3.10.5A and Appendix 3B follows.

 

TSX-V

 

Securities issued in the Placement and settled in Canada are subject to a statutory hold period of four months and one day from the date of settlement. No securities have been issued as bonuses, finders’ fees or commissions in connection with this Placement.

 

SHARE PLACEMENT: ASX LISTING RULE 7.1A.4(B) & 3.10.5A NOTICE

 

West African Resources Limited (ASX: WAF) (“the Company”) advises that it has issued 70,000,000 fully paid ordinary shares at 30.0 cents per share under ASX Listing Rule 7.1 and 7.1A, as announced on 10 August 2016.

 

The Company hereby provides notice to the ASX for the purposes of ASX Listing Rule 3.10.5A and ASX Listing Rule 7.1A.4(B) that on 18 August 2016 it issued 70,000,000 fully paid ordinary shares in the Company, of which 61,330,988 were issued in accordance with ASX Listing Rule 7.1 and 8,669,012 were issued in accordance with ASX Listing Rule 7.1A (“Placement”).

 

The issue price was 30.0 cents per share, with a total of $21,000,000 in funds raised before costs.

 

Pursuant to the provisions of ASX Listing Rule 3.10.5A in which the issue of 8,669,012 ordinary shares were made under ASX Listing Rule 7.1A, the Company states that:

 

a)    The Placement of 8,669,012 ordinary shares represented 1.81% of the expanded ordinary shares on issue of the Company, resulting in a dilution to the existing holders of ordinary securities by that amount.

 

Further details of the approximate percentage of the post-placement capital held in aggregate by the following, are as follows:

 

Placement % of issued capital

Post Placement % of issued capital held by pre-placement sh’ers

1.81%

98.19%

 

Pre Placement Securityholders

 

 Participants in Placement

 Non-Participants in Placement

 New Shareholders

0.00%

100.00%

100.00%

 

 

b)    The Company issued the shares as a placement under ASX Listing Rule 7.1A as it was of the view that it was the most efficient and expedient mechanism to raise the funds required for:-

 

  • accelerated exploration and resource definition at the Company’s 100% owned Tanlouka Gold Project in Burkina Faso. (“Project”);

 

  • completion of a Definitive Feasibility Study on the Project;

 

  • commencement of early civil works at the Project, such as the construction of a water storage facility;

 

  • repayment of the US$5 million debt facility held with Macquarie Bank Limited;

 

  • ablutions and camp facility; and

 

  • for general working capital purposes.

 

c)    The Company confirms that there was no underwriter with respect to the Placement.

 

d)    Applications for the 8,669,012 ordinary shares issued under ASX LR 7.1A were made via Hartleys Limited, the Lead Broker to the Placement. The Company will pay Hartleys a capital raising fee comprising a management fee of 2% and a distribution fee of 4%, of the total placement amount in addition to a monthly advisory fee. The Company has also issued the broker 10,000,000 unlisted options, exercisable at 8.5 cents, with a term of 3 years from date of issue.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

_________________

Simon Storm

Company Secretary

 

 

For further information, contact:

 

Richard Hyde                     Nathan Ryan

Managing Director           Investor Relations

Ph: 08 9481 7344               Ph: 0420 582 887

Email: [email protected]

 

 

Contact Information:

[email protected]

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