Australia-based gold mining company West African Resources has raised A$150m ($101m) to advance the development of its Kiaka gold project in Burkina Faso.
The funds were secured through firm commitments from institutional and sophisticated investors. This involved the placement of nearly 109.5 million new fully paid ordinary shares at an issue price of A$1.37 ($0.92) per share.
West African Resources intends to utilise the new capital primarily for purchasing owner mining fleet and exploration drill rigs. It will also be used to establish owner mining workshop facilities.
The company plans to fund the construction and ramp-up of the Kiaka project through existing cash reserves, proceeds from unsold bullion placements, finalised equipment finance, and ongoing cashflows from the Sanbrado gold project.
The Kiaka gold project is located 45km south of the Sanbrado gold operations and around 110km southeast of Ouagadougou. It is a long-life and low-cost open pit gold project averaging 234,000oz of gold production per annum for 20 years.
According to the 2024 feasibility study update, the Kiaka gold project entails an estimated pre-production capital cost of $447m. It is slated to begin gold production in Q3 2025.
The development of the Kiaka gold project is expected to contribute towards West African Resources’ goal of becoming a multi-project gold producer with over 420,000oz per year from 2025.
West African executive chairman and CEO Richard Hyde said: “West African continues to make significant progress towards development of the Kiaka Gold Project with development 50% complete and 75% of capital costs fixed. “Proceeds from the placement are expected to provide West African with proforma cash at bank and unsold bullion proceeds of A$604m, positioning West African to continue to rapidly progress the development of the Kiaka Gold Project. West African is currently on schedule to be a +420,000 ozpa gold producer from 2025.”
