Azumah Resources Limited (ASX:AZM) has surpassed the $2 million intended to be raised in a share purchase plan (SPP) by $750,000 with funds to advance the Wa Gold Project in Ghana.
After receiving $1.772 million from the 319 eligible shareholders who participated in the SPP, nominees of the underwriter, Patersons Securities Limited, subscribed for the remaining $228,000.
Patersons then proceeded with a top up placement as part of an underwriting agreement to its qualifying clients to raise a further $750,000.
Funds raised will provide additional funds to service and advance Azumah’s interests in the Wa project, which hosts a gold resource of 2.77 million ounces.
Azumah aims to complete a feasibility study for the project by the end of the year.
SPP funds will also be allocated to general working capital.
Chairman Michael Atkins and non-executive director Debra Bakker also participated in the SPP.
Atkins purchased two lots of 1,071,429 shares with a total value of $30,000 and now holds almost 5.285 million shares in direct and indirect interests.
Bakker purchased 1,071,429 shares with a value of $15,000 and now holds 1,471,429 shares.
The plan issue price per share was calculated as 1.4 cents per share.
This represents a 20% discount to the 5-day VWAP of shares trading on ASX over the last five trading days on which shares were traded immediately before the allotment date of July 12.
Directors of the company thank shareholders for their continued support.
JV partner at the Wa project, Ibaera Capital, has earned 42.5% after completing earn-in requirements.
This follows Ibaera providing US$11.25 million as part of the earn-in and shareholders agreement with Azumah.