Awalé Resources Ltd (TSX-V:ARIC) announced plans to raise up to $10 million to advance its projects in Côte d'Ivoire.
The company has entered into an agreement with Canaccord Genuity (TSX:CF, LSE:CF), acting on behalf of a syndicate of underwriters, according to a release.
Under the terms of the agreement, the underwriters have agreed to purchase 16.13 million units of Awalé at a price of C$0.62 per unit for gross proceeds of C$10,000,600.
Each unit comprises one share and one-half of one warrant, which grants holders the right to acquire one share at a price of C$0.80 within 24 months from the closure of the offering.
Additionally, Awalé has granted the underwriters an option to purchase up to an additional 2,419,500 units at the offering price, allowing for potential additional gross proceeds of up to C$1,500,090.
The net proceeds from this offering are earmarked for advancing its Côte d'Ivoire assets, alongside allocations for working capital and general corporate purposes.
The offering is anticipated to close around May 8, 2024.