LONDON (Alliance News) - Amara Mining PLC Friday said it plans to raise up to GBP22.3 million through a share placing and open offer in order to continue the development of its Yaoure and Baomahun sites.
The west Africa-focused gold mining company proposed a placing and subscription of 107.1 million shares at a price of 17.0 pence to raise GBP18.2 million and an open offer of 24.5 million at the same price to raise up to GBP22.3 million.
Amara said the issue price of 17.0 pence per share represents a discount of 1.4% to the closing price of 17.25 pence per share on March 20.
The company said it plans to use the funds to further explore its Yaoure Gold Project in the Ivory Coast to upgrade its existing inferred mineral resources to the measured and indicated categories, expand the current in-pit mineral resources and to deliver a Pre-Feasibility Study.
However, Amara noted that at this point it is already fully funded to the point of delivering its Pre-Feasibility Study of the Yaoure site in the first quarter 2015.
The company also said it plans to use the cash to further optimise the Baomahun Gold Project in Sierra Leone and for general working capital purposes.
Amara added that any additional funds raised from the open offer will be applied to support a Bankable Feasibility Study, as well as to further optimise Baomahun and for general working capital purposes.
The company also said that while it expects in 2014 to generate robust cash flow in Burkino Faso, where the company operates the producing Kalsaka/Sega site, this is not expected to provide enough funds for the optimal 2014 exploration programme at Yaoure.
Amara said that following the reduction in gold price during 2013, an impairment review was carried out on Kalsaka/Sega, which is expected to result in a non-cash impairment charge of between USD12-18 million on the project's current carrying value of USD45 million.
The company said that excluding impairments, its upcoming full-year results are expected to show a total comprehensive loss for the year attributable to equity shareholders of USD15-18 million.
Amara Mining shares were down 2.6% to 16.80 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
