Awale Resources Limited (TSXVARIC) (FRA20Z) (Awale or the Company) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. as lead underwriter (the “Lead Underwriter”), on behalf of a syndicate of underwriters (together with the Lead Underwriter, the “Underwriters”), to act as sole bookrunner in respect of a bought deal private placement financing (the “Offering”) on a private placement basis of up to 25,000,000 units (“Units”) for gross proceeds of approximately C$10 million. Each Unit will be issued at a price of C$0.40 per Unit (the “Issue Price”).
Awale intends to use the net proceeds from the Offering to further advance its exploration projects in Côte d’Ivoire, specifically the Bondoukou and Odienne projects, including for drilling, exploration expenditures, and working capital purposes.
The Units will consist of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.60 for a period of 24 months following the closing date of the Offering.
The Offering is scheduled to close on or about mid-September 2023 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange. The Company may pay the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering and grant the Underwriters that number of non-transferable compensation options (the “Broker Warrants”) as is equal to 6% of the number of Units sold under the Offering. Each Broker Warrant will entitle the holder thereof to acquire one Common Share at the Issue Price for a period of 24 months following the closing date of the Offering.
Awale is an exploration company with a portfolio of gold projects in Côte d’Ivoire, West Africa. The Company’s flagship projects, Bondoukou and Odienne, are considered highly prospective for gold mineralization and have shown promising exploration results to date. The proceeds from the Offering will allow Awale to accelerate its exploration activities and further unlock the potential of its projects.
Investors interested in participating in the Offering should contact their investment advisor or Haywood Securities Inc. for more information.
In conclusion, Awale’s announcement of the bought deal private placement of Units represents a significant milestone in the Company’s growth strategy and underscores the confidence of investors in its projects and management team. With the proceeds from the Offering, Awale is well-positioned to drive forward its exploration efforts and create long-term value for its shareholders.