West African Minerals raises funds to develop Binga licence

5th Feb 2014 08:51

AIM-listed West African Minerals has placed just under 52.8m shares at 7p each to raise funds the development of the Binga licence zone. Specifically, the proceeds of the placing, which raised £3.7m before expenses, will fund a staged work programme on the licence zone in 2014. Depending on the results of the metallurgical test work planned during the first quarter of 2014, will also fund ground-based geophysics work, additional infill drilling on geophysics to target an increased mineral resource and conceptual studies on commercial operations including port and terminal. The placed shares equalled 15.44% of the enlarged issued share capital. As part of the placing, the group issued one warrant for every two placed shares. The warrants will be exercisable for one new ordinary share at a price of 10p per ordinary share for a period of two years, the group explained. Company President Brad Mills said: "We are very pleased with this placing as it will enable the company to continue with the next steps to determine a high-level techno-economic assessment of the Binga project. The metallurgical test programme has been finalised and samples are currently en route to a test facility in South Africa. "[...] the Binga project could represent a clear strategic advantage for the company with the potential for cash flow in the near term." NR