Fortuna Mining buys 15% of Awalé Resources
Awalé Resources (TSXV: ARIC) has been given a C$8.26 million ($6 million) investment boost from Fortuna Mining (TSX: FVI; NYSE: FSM) to support its exploration activities in Côte d’Ivoire, sending its shares higher.
In a press release Thursday, Awalé said Fortuna, which also operates in the African nation, will buy roughly 15 million of its shares at C$0.55 per share, for a premium of 19% to the stock’s 10-day volume-weighted average on the TSX Venture Exchange.
The announcement sent Awalé’s shares 14% higher by midday in Toronto, trading at C$0.49 apiece for a market capitalization of approximately C$42.9 million ($31 million).
At closing, Fortuna will own approximately 15% of Awalé’s shares, joining Newmont (TSX: NGT, NYSE: NEM) and Orecap Invest as the largest shareholders in the company.
“We are extremely pleased to welcome Fortuna Mining as a strategic investor,” Awalé CEO Andrew Chubb said in a press release.
“As an established and successful operator with a strong presence in West Africa and particularly in Côte d’Ivoire, Fortuna’s investment is a strong endorsement of our technical team, our exploration approach, and our clear vision for the Odienné district.”
Odienné property
Fortuna’s investment is expected to accelerate Awalé’s exploration on its 100%-owned Odienné property, encompassing seven permits and a total of 2,346 sq. km.
The geological setting at Odienné is comparable to that of other significant iron oxide copper gold (IOCG) provinces globally, and could be host to the first major IOCG deposit in West Africa, the company said.
The Odienné property was first explored in the mid-1990s by a joint venture between SODEMI and Randgold, which only completed sampling in certain areas.
Awalé took over the project in 2017 and conducted its own exploration, including drilling. It later partnered with Newmont and formed an earn-in joint venture on two of the permits.
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