The issue was priced at $0.02, with investors already sitting on a 15% paper gain based on the last traded price of $0.023.
The shortfall will be placed with underwriter Paterson’s Securities, and in total the issue will raise $2.33 million before costs.
The funds raised will strengthen the company’s ability to deliver on a variety of initiatives in the coming months at its Wa Gold Project in Ghana, West Africa.
The project hosts 2.1 million gold ounces at 1.5g/t gold. This includes 1.4 million gold ounces in the Measured and Indicated categories at 1.7g/t gold.
Stephen Stone, managing director, commented:
"The solid support of the rights issue by existing shareholders represents a strong endorsement of the company’s repositioning for its next growth phase following the completion last week of its Earn-In and Shareholders Agreement with private equity group, Ibaera Capital.
"We welcome to the register our new shareholders and look forward to them also participating in a swift unlocking and adding of value to the Wa Gold Project by the newly formed partnership."