In an interview with Thomas Warner from Proactive, Andrew Chubb, CEO of Awalé Resources Ltd (TSX-V:ARIC), discussed the junior exploration company's recent financial milestone.
Awalé successfully closed a non-brokered private placement with Newmont Ventures Limited, a subsidiary of Newmont Corporation, raising gross proceeds of C$957,530.89.
This strategic financial move not only enhances Newmont's stake in Awalé to 15% but also marks a significant vote of confidence in the company's exploration capabilities, particularly at the Odienné project permits.
Chubb elaborates on how this investment will accelerate exploration activities on their wholly-owned permits, which intriguingly encircle the properties jointly ventured with Newmont.
TW: Andrew, it's a pleasure to have you with us. Congratulations on closing a significant financing deal with Newmont Ventures Limited. Can you share the details of this arrangement?
AC: Thanks, Tom, it's great to be here. Yes, we've just completed a financing round with Newmont, raising nearly a million Canadian dollars. This has increased Newmont’s stake in Awalé to 15%. They initially held a 10% share through a joint venture, which had slightly diluted, but now they've not only restored their original stake but also increased it at a premium price. This investment is a significant boost for us, enabling accelerated exploration on our 100% owned permits around the joint venture properties with Newmont.
TW: This increased investment from Newmont seems to be a strong vote of confidence in Awalé's work. Would you agree?
AC: Absolutely, Tom. It's a clear indication of Newmont's confidence in our operational approach and the potential of the district we're working in. We have a vast area of two and a half thousand square kilometres, with Newmont involved in a hundred of those. Their investment is a positive signal for the prospects of our surrounding permits as well.
TW: Reflecting on 2023, how do you feel about Awalé's progress?
AC: 2023 has been a transformative year for us. Following the May financing, we've conducted effective housekeeping and are now well-positioned for a strong 2024. The results from our joint venture work with Newmont have been encouraging, and their increased funding commitment, raising the budget from $3 million to $3.75 million, has been a significant bonus. This boost has kickstarted an extensive diamond drilling program of three to four thousand meters, already underway.
TW: What should investors expect in terms of upcoming drill results?
AC: We’ve been anticipating these results, and they will definitely be something to look out for in January. Though there’s been a bit of a wait, these results are crucial and we're excited to share them post-New Year. They should provide further insights into the potential of our projects.