West African launches capital raising

West African Resources has announced it will raise $7 million to fund drilling programs at its Moktedu gold project in Burkina Faso.

West African said it would issue 15.5 million shares at 45 cents per share to raise the funds through a placement to institutional and sophisticated investors.

The raising was overseen by Blackwood Capital.

Earlier this week, the company announced a high-grade gold discovery over a strike length of 1.6 kilometres at Moktedu.

At 9:48AM (WST) West African shares had gained 9.4 per cent to trade at $0.52.