Asara Resources Welcomes Barbet LLC as New Cornerstone Investor
ASARA RESOURCES LIMITED (AS1) Share Update September 2024 Monday 16th
Asara Resources Secures A$1.417m Investment from Barbet LLC
Asara Resources Limited (ASX: AS1) has announced a significant new investment from Barbet LLC, raising A$1.417 million to support the development of its flagship Kada Gold Project in Guinea.
Instant Summary:
- Asara Resources raises A$1.417 million through a placement.
- Barbet LLC to acquire a 12% shareholding in Asara.
- Funds to be used for exploration and development of Kada Gold Project.
- Exploration activities to commence in December 2024.
Investment Details
Asara Resources Limited has entered into a binding Subscription Agreement with Barbet LLC FZ to raise US$950,000 (A$1.417 million). This investment will see Barbet subscribing for 118,090,890 shares in Asara at $0.012 per share, representing a 12% shareholding in the company.
The placement price of $0.012 per share is a 10% premium to the 10-day volume-weighted average price (VWAP) of $0.0109 per share. The proceeds from this placement will be directed towards initial baseline study work, exploration activities, and general working capital for the Kada Gold Project.
Project Focus
Asara's Managing Director, Tim Strong, expressed enthusiasm about the new partnership with Barbet LLC, highlighting the company's debt-free status following the sale of its Kouri Gold Project in Burkina Faso. The focus is now on advancing the Kada Gold Project, which has an estimated mineral resource of nearly one million ounces of gold.
Exploration activities at Kada are scheduled to begin in the December quarter of 2024, following the conclusion of the rainy season in Guinea. The company aims to grow its mineral resource inventory through a systematic exploration program over the next 18 months.
Strategic Partnership
Barbet LLC brings a wealth of experience in developing projects in West Africa, including Guinea. This strategic partnership is expected to leverage Barbet's extensive knowledge and understanding of the region to unlock the full potential of the Kada project.
Under the terms of the Subscription Agreement, Barbet is entitled to appoint one nominee as a Director of Asara, provided they maintain at least a 10% shareholding. However, Barbet has indicated that they do not intend to appoint a nominee Director at this time.
Future Outlook
The funds raised through this placement will be crucial in advancing the exploration and development of the Kada Gold Project. Asara plans to provide regular updates to the market as the project progresses.
This significant investment from Barbet LLC is expected to positively impact Asara Resources' stock price. The funds will enable the company to advance its flagship Kada Gold Project, potentially increasing its mineral resource inventory and overall market value. The 10% premium on the placement price also reflects investor confidence in Asara's future prospects.
Investor Reaction:
Analysts are likely to view this investment as a positive development for Asara Resources. The strategic partnership with Barbet LLC, combined with the company's debt-free status and focused efforts on the Kada project, positions Asara for potential growth. However, investors will be keen to see tangible progress in the exploration activities scheduled for December 2024.
Conclusion:
Investors should keep a close eye on Asara Resources as it advances its Kada Gold Project with the support of Barbet LLC. The upcoming exploration activities and potential growth in mineral resources could significantly impact the company's market value. Stay informed on Asara's progress and consider the long-term potential of this promising investment.