🕐16.09.14 - 04:27 Uhr

AZUMAH RESOURCES - AZUMAH PLACEMENT STRENGTHENS DEVELOPMENT RELATIONSHIP



Having trouble reading this email? View it in your web browser http://azumahresources.cmail1.com/t/r-e-mhjydtd-sdrdhmd-i/. Azumah Placement Strengthens Development Relationship Perth-based gold explorer and developer Azumah Resources Limited (ASX:AZM) (Azumah or the Company) is pleased to advise that existing shareholder Caitlyn Limited (Caitlyn) is investing an additional $1.2 million in the Company reinforcing its commitment to assist Azumah advance its Wa Gold Project (the Project)(Figure 1) in north west Ghana, West Africa. The funds will be provided via the issue of 30 million new ordinary Azumah shares at $0.04 each (the Placement) and, together with Caitlyns existing shareholding of 20 million shares, will elevate it to become Azumahs largest shareholder at ~13%. Azumahs working capital will increase to over $4 million with the new funds being applied to complete the Companys Feasibility Study (Study), scheduled for Q4 2014, and to drill several high-priority exploration targets. "The increased commitment by Caitlyn provides a strong endorsement for the Wa Gold Project and complements our other key investors and Project participants, Ausdrill and Macquarie Bank, to create a powerful alignment of interests." Azumahs Managing Director, Stephen Stone said. Caitlyn is controlled by Indian industrialist Mr Agnivesh Agarwal who is Chairman of United Arab Emirates-based gold refiner Fujairah Gold FZC, a 100%-owned subsidiary of UK listed mining house, Vedanta Resources plc (Vedanta), of which Mr Agarwals family is the major shareholder. A Subscription Agreement also provides Caitlyn with a frontline opportunity to participate in a Project development funding package structured by Azumah.

If Caitlyn decides to not participate, it has agreed not to use its shareholding to block progress of the funding or any related corporate transaction. An anti-dilution provision allows Caitlyn to maintain its 13% equity holding for the next 12 months and a standstill undertaking prevents Caitlyn exceeding a 19.99% holding for 3 years. Azumah recently increased Ore Reserves and Mining Inventory to over 650,000oz gold underpinning an initial seven-year mine life for the proposed 100,000oz per year operation (refer ASX release dated 2nd September 2014). The Project is already substantially de-risked with mining leases recently granted, grid power to site, easily accessible water, excellent roads and strong community support. The considerable untapped prospectivity of Azumahs 2,800km2 licence holdings bodes well for the Company to maintain its track record of increasing Mineral Resources, Ore Reserves and mine life. The Placement is not subject to Azumah shareholder approval. Download the full announcement including figure and tables Contact Details: Stephen Stone Mb: +61 (0) 418 804 564
Suite 2, 11 Ventnor Avenue West Perth WA 6005 Tel: +61 (0)8 9486 7911 Fax: +61 (0)8 9481 4417
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