West African Resources (ASX: WAF) should trade slightly firmer after completing its previously announced acquisition of neighbouring gold explorer Channel Resources (TSX.V: CHU) in Burkina Faso.
West African has issued 32,036,754 shares, 14,918,508 three year warrants exercisable at $0.40, and 1,365,000 replacement options to former Channel shareholders.
West African shares and warrants will commence trading on the TSX Venture Exchange this week, which will have the added benefit of increasing exposure and potential funding options for the company.
Channel's Tanlouka project lies adjacent to West African's existing Boulsa project and has a known gold resource of 1 million ounces at 1 gram per tonne.
The company will commence work at Tanlouka with drilling to focus on improving the oxide components of the resource, while also targeting higher grade mineralisation at depth with diamond drilling.
These activities should lead to a resource upgrade by the end of the first quarter of 2014.
Scoping studies will be completed in the first half of 2014 in order to create a low-cost heap leach starter project, with the objective of short term cash-flow from the expanded base of near surface gold assets.
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