Awale Resources Limited has closed a non-brokered private placement of 22,337,664 common shares at $0.85 each, for gross proceeds of $18,987,000. The financing brings in Predictive Discovery Limited as a new shareholder and increases the holding of Fortuna Mining Corp., which exercised an existing participation right.
Predictive Discovery took 16,642,352 shares for $14,146,000, leaving it with roughly 11.8% of the shares outstanding. Fortuna subscribed for 5,695,312 shares for $4,841,000, taking its position to 20,732,905 shares, or about 14.7%. Immediately after closing, Awale had 141,334,595 shares outstanding, up from just under 119 million before the placement — dilution of close to 19% for existing holders.
No warrants were attached. Awale agreed to pay a cash commission of $424,380, equal to 3% of the gross proceeds from the Predictive Discovery subscription, to an arm's length finder. The new shares carry a four-month-plus-one-day statutory hold period, and the placement remains subject to final acceptance by the TSX Venture Exchange.
According to the company, proceeds will go mainly toward exploration on its 100%-owned ground at the Odienne project in Côte d'Ivoire. Chief executive Andrew Chubb said in the release that Awale holds more than $35 million in cash following the closing, while Newmont continues to fund the separate Odienne joint venture.
Newmont Ventures Limited, an existing shareholder, also holds a right to maintain its pro-rata position. If it exercises in full, Awale could issue up to a further 14,761,167 shares at $0.85 for as much as $12,546,992. The company states there is no assurance Newmont will participate, and says a separate announcement will follow if it does.
Fortuna's subscription is a related-party transaction under Multilateral Instrument 61-101 because it already held more than 10% of the shares. Awale is relying on exemptions from the formal valuation and minority approval requirements, on the grounds that it is not listed on a specified stock exchange and that the transaction value is below 25% of its market capitalisation.
Awale has also entered an investor rights agreement with Predictive Discovery granting it a participation right in future equity financings, alongside other terms described in an earlier release. The agreement is to be filed as a material contract.
The Odienne project covers 2,346 square kilometres across seven permits, of which 797 square kilometres sit inside the Newmont joint venture, funded by Newmont under a May 2022 exploration agreement. An initial inferred resource estimate published in May 2026 set out 1.71 million ounces gold equivalent across the BBM, Charger and Empire deposits, from 32.4 million tonnes grading 1.33 g/t gold and 0.33% copper. Inferred is the lowest confidence resource category and is not a reserve.
Source: Newsfile
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