Afferro Mining is planning on raising funds through an institutional placing. The gold and iron ore mining company has projects in Cameroon and Liberia.
The company plans to raise $24 million by selling 17.2 million common shares at 90 pence each which is a 9.09% discount on the closing mid market price on the London Stock Exchange. This will increase the current issued share capital of the company by 19.99%.
Afferro Mining has applied for the admission of the placing shares to trade on the AIM market of the London Stock Exchange. Trading is likely to begin on July 22, 2011. There are also plans to apply for listing on the TSX Venture Exchange, but this is subject to regulatory approvals.
The funds thus raised will be utilized in the completion of a drilling program, a scoping study and beginning a preliminary assessment study for the Nkout project in Cameroon. The funds will also be used to finance the costs of the joint venture they have in Liberia called the Putu project. This includes a resource definition drilling program and an expedited pre-feasibility study at the Putu project.
Some of the funds will be used for corporate costs and general working capital. There is also the possibility of identifying new targets in Cameroon. Evolution Securities and RBC Capital Markets are acting as joint book runners, while GMP Securities Europe is acting as co-lead manager relating to the offering.