Viking Ashanti (ASX: VKA) will raise up to A$1.73 million via a pro-rata non renounceable rights issue to shareholders to build on the 700,000 ounce gold resource at Akoase in Ghana.
Proceeds from the rights issue will be used to further progress exploration and resource expansion on the Company’s Akoase and West Star/Blue River gold projects in southern Ghana.
Viking Ashanti chairman, Mr Jack Gardner said:
“This capital raising will allow our team to continue to build on the 700,000 ounce gold resource we have already defined at our Akoase project in Ghana, and to test exciting new gold targets further south at our West Star/Blue River project. It is our belief that both projects have the potential to add substantial value through discovery, to the Company.”
The company has been advised by its major shareholder, Resolute Mining Limited, and the Company’s Directors and management, who together hold in excess of 50% of the issued capital of Viking Ashanti, that they intend to subscribe to the Rights Issue.
Ther rights issue, which is not underwritten, will be made on the basis of one new share for every four existing Viking Ashanti shares held, at an issue price of $0.10 per share - with one free attaching option per share issued, exercisable at $0.18 on or before 31 August 2014.
Any shortfall in subscriptions under the Rights Issue will be placed at the discretion of the Company, in conjunction with Canaccord.
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