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Dual-listed gold miner West African Resources has announced that it has received commitments to raise A$35 million through a placement of 109.375 million shares at A$0.32 per share.

The placement was heavily over-subscribed, and supported by existing shareholders, as well as several new large institutional investors from European, North American and Australian markets.

Commenting on the success of the placement, MD Richard Hyde said:

“The demand for the placement is a strong endorsement of the quality of the Sanbrado gold project and our strategy to bring forward early development activities, in particular, commencing the underground decline into the high-grade M1 South deposit."

Accessing M1 South from the underground earlier will enable infill and extensional to continue in a more targeted and cost-effective manner.

"West African Resources is now well positioned to deliver an updated Feasibility Study incorporating concurrent open-pit and underground mining this quarter, and press on towards the development of the project later this year.”

“We have a very substantial mineral endowment in the wider Sanbrado project area to explore, and as such, we have an objective to drill at least 60,000 metres per annum to continue building the mining inventory," continues Hyde.

"This placement ensures we can maintain this pace of drilling.

"We are on track to deliver an updated mineral resource estimate this quarter, as well as the results of updated feasibility study incorporating open-pit and underground mining.

The feasibility study will integrate the high-grade gold from M1 South into the mine plan, which is expected to deliver transformational changes to the annual production, cost profile and life of mine.”

Hartleys Limited and Sprott Capital Partners, a division of Sprott Private Wealth LP, together were the joint lead managers and Bookrunners to the placement.

Euroz Limited, Cormark Securities Inc. and Macquarie Capital Markets Canada Ltd. were Co-Managers to the Placement.

The placement will be completed in one tranche, within the company’s issuance capacity pursuant to ASX Listing Rules 7.1 (86,101,834 shares) and 7.1A (23,273,166 shares).

As West African Resources has a secondary listing on the TSX-Venture Exchange, the completion of the Placement will be conditional upon the approval of the TSX-V, which West African Resources anticipates to receive shortly.