Mining company Teranga Gold plans to proceed to a fundraising for AU$65 million (about $49.9 million) to advance the Banfora gold project which it recently acquired in Burkina Faso.

To raise the funds, the firm signed an agreement under which it will issue 62 million shares at AU$1.05 a share. Of this volume, 32.5 million shares will be issued on a bought deal basis through a syndicate of underwriters co-led by RBC Capital Markets and Cormark Securities. Remaining 29.5 million shares will be issued on a non-brokered private placement basis, at the same price of AU$1.05 a share.

Also, the company plans to invest AU$30 million of the net proceeds to develop its Banfora project, for reserve development drilling, updating scientific and technical report and optimization studies, among other things.  

Rest of proceeds will serve to finance exploration works at Banfora, Golden Hill and Gourma (additional gold mines located in Burkina Faso) and for operating costs.

The Banfora project comprises nine exploration licences covering a total of 1,152 km². It will require a $210 million investment in funds.

Louis-Nino Kansoun