Ghana-focused () revealed it has signed a definitive share purchase agreement (SPA) to raise C$2.5 mln to help develop its Nangodi project.
The SPA with Malaysia-based engineering and construction firm Stonehouse Construction (SHC) will now see it assume operational management of Nangodi, in which Abzu is earning a 51% interest from .
SHC will now also buy just under 23 mln units from Abzu at C$0.11 each. A unit consists of one common share and one common share purchase warrant.
Each warrant is exercisable into an additional common share for a period of 12 months from the date of closing at C$0.125 each.
When the strategic partnership was first announced in July, the plan had been for SHC to buy 17 mln share units at 15 cents each.
“Market conditions have been extremely challenging, and I am glad to report that despite this, Abzu's team has been able to raise the necessary funds to advance the company,” said chief executive Tim McCutcheon.
Abzu is working to exploit Ghana's world-class gold belts and has an interest in 16 concessions.
The firm is developing plans for a phase-2 drill programme on its two advanced flagship projects Nangodi and Asafo.