The International Finance Corporation (IFC) has proposed to make an investment of $18.4 million in gold exploration and development company Roxgold by means of a non-brokered private placement.
The net proceeds of the offering will be used to partially fund the development and exploration of the Roxgold’s Yaramoko Gold Project in Burkina Faso, West Africa, and for general corporate purposes.
Roxgold announced on Tuesday that the private placement is expected to entail the placing of about 25.8 units at a price of $0.7136 per unit, totalling $18.4 million.
Each unit will consist of one common share and one-half of one common share purchase warrant.
Each full warrant will be exercisable for one additional common share of Roxgold, at a conversion price equal to $0.90 per share, for a period of two years following the date of issuance of the units, subject to a four month hold period from the date of issuance of the units.
Upon closing of the private placement, IFC will hold approximately 8.2% of the issued and outstanding common shares of Roxgold on an undiluted basis.
“We are very pleased to announce this proposed investment by the IFC.
“The IFC is a well-regarded investor known for conducting detailed due diligence on the technical, social and environmental aspects of development projects throughout the world and we look forward to continuing to benefit from its experience and resources,” says Roxgold president and CEO John Dorward.