Avesoro Resources has agreed to acquire the Youga and Balogo gold mines in Burkina Faso.
Avesoro has agreed to acquire MNG Gold Burkina SARL, Cayman Burkina Mines, MNG Gold Exploration, AAA Exploration Burkina and Jersey Netiana Mining and their subsidiaries - which collectively hold the assets - from Avesoro Jersey Limited for US$69.5m.
Avesoro Jersey is Avesoro's majority shareholder, owning 73.5% the company.
Avesoro said it had conditionally raised approximately £15.2m (approximately US$20.0m) through a placing of new common shares to new and existing sophisticated and accredited investors at 1.9p apiece.
It said US$18.5m of the proceeds would be used to fund the cash component of the acquisition consideration and the remainder would be used for general working capital purposes.
It said up to a further US$2.5m, grolss, may be raised for working capital purposes by way of a broker option, as determined by the brokers, which would remain open for exercise by the brokers until 5.00 p.m.today.
At 8:07am: (LON:ASO) Avesoro Resources Inc. Com Shs Npv Di share price was +0.05p at 1.98p