Awale Announces C$10 Million Bought Deal Private Placement of Units
Awale Resources Ltd. (TSXV: ARIC)(OTCQB: ARICF) (FSE: AMO1) (Awale or the Company) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by PI Financial Corp. as sole bookrunner and sole lead manager (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal, private placement basis, an aggregate of 25,000,000 units (“Units”) of the Company at a price of C$0.40 per Unit (the “Issue Price”) for aggregate gross proceeds to the Company of approximately C$10 million (the “Offering”). Each Unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 24 months following the Closing Date (as defined below) at an exercise price of C$0.60 per Warrant Share.
The Company has also granted the Underwriters an option (the “Underwriters’ Option”), exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering, to purchase up to an additional 3,750,000 Units at the Issue Price for additional gross proceeds to the Company of up to C$1.5 million. In the event that the Underwriters’ Option is exercised in its entirety, the aggregate gross proceeds of the Offering to the Company will be approximately C$11.5 million.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada other than the Province of Quebec, and may also be offered by way of private placement in the United States.
Awale intends to use the net proceeds from the Offering to fund exploration programs on its projects in Côte d’Ivoire and to fund general corporate and working capital expenses. The Offering is scheduled to close on or about December 22, 2021 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 and the applicable securities regulatory authorities.
This news comes on the back of Awale’s recent successes in advancing its projects and further underscores the Company’s commitment to unlocking the potential of its assets in Côte d’Ivoire. With a strong focus on exploration and resource development, Awale is well-positioned to capitalize on the current market conditions and drive value for its shareholders.
About Awale Resources Ltd.
Awale Resources Ltd. is a Canadian junior mining company focused on the exploration and development of gold projects in West-Central Africa. The Company holds a diverse portfolio of assets in Côte d’Ivoire, including the Bondoukou project and the Odienne project, both of which have demonstrated significant exploration potential. Awale is led by a team of experienced industry professionals with a proven track record of success in the region.
For more information about Awale Resources Ltd., please visit the Company’s website at www.awaleresources.com or contact the Company directly at info@awaleresources.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking statements”