Turaco Gold has announced its second major capital raise in the space of five months, as it aims to accelerate resource growth at its Afema gold project.
Turaco Gold has announced its second major capital raise in the space of five months, as it aims to accelerate resource growth at its Afema gold project.
In May, Justin Tremain-led Turaco tapped investors for $18 million to accelerate activities at Afema, located in Côte d'Ivoire, issuing 112.5 million fully paid ordinary shares at an issue price of 16 cents apiece.
On Friday, the mid-cap explorer told the market it would raise $35 million by way of a two-tranche placement, issuing 112.9 million fully paid ordinary shares at an issue price of 31 cents.
The issue price represents a 13.5 per cent discount to the company’s final closing price on October 15 prior to entering a trading halt – and a 3.7 per cent discount to the 15-day volume weighted average price.
Argonaut Securities and Canaccord Genuity were appointed joint lead managers and bookrunners to the placement, while Euroz Hartleys acted as co-manager.
“This $35 million raising provides a strong platform to accelerate drilling and continue to unlock further value at the Afema project in West Africa’s premier jurisdiction of Côte d'Ivoire – where Turaco delineated a maiden JORC resource of 2.5 million ounces within six months of acquiring its interest,” Mr Tremain said.
“With the end of wet season, we will now accelerate drilling activity to target resource extensions and new discoveries through the testing of several large-scale exploration targets.
“We have two rigs operating on site now and will look to increase this following completion of this raising.”
Turaco shares last changed hands at 34.8 cents, down 3 per cent, as of 10.21am WST.
