This strategic financial move aims to drive further growth at the company’s gold project. Credit: Aleksandar Grozdanovski/Shutterstock.

Australia-based mining company Wia Gold has secured firm commitments totalling A$30m ($19.6m) for a placement of 200 million new fully paid ordinary shares priced at A$0.15 each.

The company noted that the issue price represents a 3.2% discount to the last closing price and a 1.1% discount to the 15-day volume-weighted average price.

Upon completion of the placement, Wia will have 1,357,684,369 shares in circulation.

The company’s directors have demonstrated their confidence in the project’s potential by subscribing for A$1.1m of the placement, pending shareholder approval.

This strategic financial move aims to drive further growth at the company’s Kokoseb gold project in Namibia.

These funds are earmarked to accelerate drilling activities at the project with the goal of increasing the mineral resource estimate.

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Additionally, the investment will facilitate the initiation of scoping study work and advance the project towards the completion of a definitive feasibility study.

A portion of the placement proceeds will also support exploration drilling in Côte d’Ivoire, as well as general working capital and corporate expenses.

Wia Gold executive chairman Josef El-Raghy said: “The progress made at the Kokoseb gold discovery over the past year has been exceptional and has been recognised by existing and new shareholders as a new gold district within Namibia, a highly regarded jurisdiction by the global mining industry.

“The placement is an important step in the transition of Wia into Namibia’s leading gold exploration company, but also accelerates the development of Kokoseb into Namibia’s next gold mine.

“On behalf of the Board of Directors I would also like to welcome a number of new offshore and local institutional investors as well as thank existing shareholders for their ongoing support.”