(Ecofin Agency) - Dual-listed West African Resources inked a deal to raise C$15 million (about $11.3 million) to advance its Sanbrado gold project in Burkina Faso. The deal was signed with Sprott Capital Partners which will act as the lead underwriter for the purchase of 46.8 million ordinary shares at a $C0.32 per share.

According to the terms of the agreement, the underwriters will have the option to acquire up to 7 million additional shares for C$2.25, thus bringing the amount raised to C$17.25 million (about $13 million).

Total proceeds will be used to advance exploration drilling at Sabrando, updated resource study, revised feasibility study and for more general uses and working capital funds.

The Sanbrado project is fully owned by West African Resources which obtained mining licence last January. It holds an indicated mineral resource of 9.8 million tons, grading 2.1 g/t gold (670,000oz) and inferred resource of 10.7 million tons grading 2g/t Au (695,000oz).

Louis-Nino Kansoun