Wia Gold's A$30M Placement to Propel Kokoseb Project Forward
WIA (WIA) Share Update November 2024 Monday 4th
Wia Gold Secures A$30M to Boost Kokoseb Gold Project
Wia Gold Limited (ASX: WIA) has announced a successful A$30 million placement to fund the advancement of its Kokoseb gold project in Namibia.
Instant Summary:
- A$30 million placement at A$0.15 per share.
- 3.2% discount to last closing price.
- Funds to accelerate Namibian and Côte d’Ivoire projects.
- New shares to commence trading on 12 November 2024.
Placement Details
Wia Gold Limited has successfully secured firm commitments for a A$30 million placement, issuing 200 million new fully paid ordinary shares at A$0.15 each. This issue price represents a 3.2% discount to the last closing price of A$0.155 and a 1.1% discount to the 15-day volume-weighted average price (VWAP) of A$0.1568.
The placement received strong support from both local and offshore institutional and sophisticated investors. Directors of Wia Gold have also committed to subscribing for A$1.1 million of the placement, pending shareholder approval.
Use of Funds
The funds raised will be utilized to accelerate ongoing drilling activities in Namibia, aiming to increase the Mineral Resource Estimate. Additionally, the company plans to initiate scoping study work and advance the project towards the completion of a Definitive Feasibility Study (DFS). Drilling activities in Côte d’Ivoire will also be funded, alongside working capital and corporate costs.
Market Impact
New shares issued under this placement will rank equally with existing shares, with trading expected to commence on 12 November 2024. The placement is conducted under Wia's existing ASX Listing Rules 7.1 and 7.1A placement capacity, with settlement anticipated on 12 November 2024 and allotment on or around 13 November 2024.
The A$30 million placement is a strategic move to bolster Wia Gold's financial position and expedite the development of its Kokoseb project. The slight discount on the share price is typical for such placements and reflects the company's confidence in its growth trajectory. The successful placement indicates strong investor confidence in Wia Gold's potential and the promising prospects of the Kokoseb project.
Investor Reaction:
Analysts are likely to view this placement positively, as it provides Wia Gold with the necessary capital to advance its projects. The involvement of institutional investors suggests a strong belief in the company's future prospects, which could bolster investor sentiment.
Conclusion:
Wia Gold's recent A$30 million placement is a significant step towards accelerating the development of its Kokoseb gold project. Investors should keep an eye on the progress of the project and the company's strategic initiatives to maximize the value of this capital infusion.