TSX-V-listed Awalé Resources has finalised its private placement financing agreement with gold production and development company Predictive Discovery and midtier precious metals producer Fortuna Mining, securing funds that will mainly go toward exploration at its wholly-owned Odienné project, in Côte d'Ivoire.

Awalé has issued about 16-million common shares to Predictive Discovery for gross proceeds of $14-million, representing about 11.8% of the company’s issued and outstanding common shares.

The company has also issued about five-million common shares to Fortuna Mining for gross proceeds of about $4-million, resulting in Fortuna owning a total of 20-million common shares and representing about 14.7% of the company’s issued and outstanding common shares.

"Following completion of the offering, Awalé holds over $35-million in cash, giving us the financial strength to aggressively advance exploration across our 100%-owned properties, while Newmont continues to fund the Odienné joint venture.

“With three leading mining companies as strategic shareholders and one of the most active drill programmes in West Africa, Awalé is well positioned to unlock the full potential of the Odienné district. These investments are a strong endorsement of our team, our exploration strategy and the potential of the project,” says Awalé president and CEO Andrew Chubb.

Meanwhile, the company points out that global gold mining company Newmont, a shareholder of Awalé, has the right to participate on equal terms in equity issuances as a way of maintaining its pro rata ownership in Awalé.

Should Newmont choose to exercise its right to participate in full, Awalé says it may issue up to an additional 14-million common shares at a price of $0.85 a share for gross proceeds of up to $12-million or a lesser amount as may be elected by Newmont under its participation rights.

However, there is no assurance that Newmont will participate in the offering or maintain or increase its current equity ownership in Awalé as permitted under its participation rights.