African Aura raises funds to advance projects

Finance

African Aura Mining Inc has raised £11.3 million (US$17.4 million) in a share sale to complete a feasibility study on its Liberian gold project and to prove up resource on other projects.

A total of 17.4 million shares were sold at £0.65/share, compared with £0.68/share immediately prior to a voluntary suspension on Tuesday pending the announcement.

The shares in issue increased by a third following the placing. The company’s directors purchased 702,650 shares in the placing, and own a 10.27% stake.
 
The funds raised will be able to fund work for 14 months, including completion of a bankable feasibility at the company’s New Liberty gold project (US$9 million), deliver a maiden resource for the Nkout iron ore project in Cameroon (US$3.8 million) and deliver a NI 43-101 resource statement for the Weaju gold deposit in Liberia (US$1.1 million).

New Liberty has a measured and indicated resource of 13.55Mt at 3.18g/t Au, containing 1.4Moz.

No funds from the placing to be applied to Putu Iron Ore Project in Liberia, which is fully funded under the joint venture agreement with Severstal Resources.

In December 2008, Severstal injected US$30 million into the exploration of the Putu iron ore project. Some US$20 million of these funds are to be spent over the next year to complete work leading to a NI 43-101 compliant resource upgrade and completion of the feasibility programme.