Business
Awale Signs Investment Agreement for Non-brokered Private Placement with Newmont
Vancouver, British Columbia--(Newsfile Corp. - December 1, 2023) - Awalé Resources Limited (...
About this update from Awale Resources Limited
[{"type":"text","content":"Awale Signs Investment Agreement for Non-brokered Private Placement with NewmontVancouver, British Columbia--(Newsfile Corp. - December 1, 2023) - Awalé Resources Limited (TSXV: ARIC) (\"Awalé\") is pleased to announce that Awalé and Newmont Ventures Limited (\"Newmont\"), a wholly-owned subsidiary of Newmont Corporation, subject to TSX Venture Exchange (\"Exchange\") acceptance, have entered into an Investment Agreement (the \"Agreement\") for a strategic non-brokered private placement financing to raise C$957,530.89. The financing will be structured through the issuance of (i) units (\"Units\") with each Unit comprised of one common share in the capital of Awalé (a \"Share\") and one half of one common share purchase warrant (a whole warrant, a \"Warrant\") and (ii) Shares. If completed, the proceeds from the financing will be used to initiate greenfield exploration on the Odienné project permits, which lie outside the Newmont Joint Venture, and for general administrative costs of Awalé. This proposed transaction builds on Newmont's initial investment through an exploration agreement with venture option and subscription agreement signed in May 2022 and as announced on June 15, 2022. This proposed financing will be completed in two phases and involve the following key terms:Newmont will first subscribe for such number of Units at a price of C$0.12 per Unit in order to increase its holdings in Awalé from approximately 5.75% to 10.39% of the issued and outstanding Shares on a non-diluted basis (the \"Top-Up Financing\"), being equal to the percentage Newmont held prior to Awalé's May 2023 financings and issuance of Shares in settlement of certain debt, as announced on May 24, 2023 and October 27, 2023. Based on 56,203,009 issued and outstanding Shares, Newmont will subscribe for 2,908,714 Units for an aggregate purchase price of C$349,045.68 in this Top-Up Financing. Each Warrant will be exercisable to acquire one Share (a \"Warrant Share\") at a price of C$0.20 per Warrant Share for a period of 36 months from closing.In addition to the Top-Up Financing, the remaining proceeds of the financing will be used to purchase additional Shares at C$0.171 per Share (\"Additional Shares\" and such financing, the \"Subscription Financing\"). Based on 56,203,009 issued and outstanding Shares, Newmont w...