Wia Gold says it is hoping to raise N$130 million (A$11 million) through a three-for-five entitlement offer to accelerate resource growth drilling at its Kokoseb gold project in Namibia.
The entitlement offer will be priced at 3.2 Australian cents a share, with Wia having received irrevocable commitments from several shareholders for a total of N$41 million (A$3.4 million).
The offer is partially underwritten for a further N$60 million (A$5 million) in excess of these commitments.
“Funds raised under the entitlement offer are to be applied to accelerate exploration across the company’s projects, with the predominant focus being resource growth drilling at the Kokoseb gold project in Namibia. This drilling includes both targeted along strike extension of the Kokoseb deposit zones, as well as testing of the clear potential for multiple high-grade shoots at depth,” the company said.
Wia chairperson Andrew Pardey said proceeds from the raise will allow the company to accelerate its exploration activity at the Kokoseb gold project.
“The impressive nature of the ongoing exploration results at Kokoseb demands that we accelerate our growth drilling activities there. The extensional potential, both along strike and at depth, along with the accompanying high-grade shoot potential that is increasingly apparent, is a substantial prize for us to pursue,” he said.
“The proceeds from this rights issue will allow us to do this more rapidly, but without any dilution of our systematic approach to exploration of this emerging world-class gold opportunity. I would like to thank our major shareholders for their support of this capital raising and our longer-term vision for Kokoseb, and Wia more broadly.
“This support allows us to rapidly pursue the latent growth potential at Kokoseb, while also seeking to deliver further value-accretive discovery success across our broader Namibian and Cote d’Ivoire portfolios,” he added.
The Kokoseb gold project lies within the Okombahe Exploration Licence, which is held under a joint venture by WIA (80%) and the Namibian state-owned mining company, Epangelo Mining.
Epangelo Mining Managing Director Eliphas Hawala had previously told The Brief said the company’s shareholding will continue to decline based on the investments to be made by Wia Gold to realise the Kokoseb project.
