Azumah Completes US$30m Raising to Accelerate Resource Growth in Ghana

Azumah Resources will embark on an aggressive exploration drive to grow its resource base and identify additional sources of mineralisation at its 1.2 million-ounce Wa Gold Project in Ghacost of copper ore processing plantna after completing a $30 million capital raising.

The placement of 50 million shares at 60c each has boosted Azumah’s working capital to nearly $40 million.

Major shareholder, Macquarie Bank, has maintained its position as Azumah’s biggest shareholder with a 12 per cent stake and North American institution J.P. Morgan has acquired an initial 8 per cent stake alongside several other North American, European and Australian institutional clients of issue lead manager Toronto-based Clarus Securities Inc. and Australian-based co-manager BGF Equities.

Shareholders approved the placement on 25 November 2010 and all funds have now been received.

This capital raising, which was at a price 50 per cent above the previous raising in May 2010, is consistent with the Company’s strategy of broadening its institutional shareholder base in the lead up to the development of a 70,000oz a year-plus gold mine at Wa.

The feasibility study is due for completion in early 2011 and production is scheduled to commence in 2012.

“Azumah is now in an extremely strong position to deliver on its key objectives of boosting resources at Wa and converting these to reserves to underpin a long term mining operation,” said Azumah Managing Director Stephen Stone.

“A growing number of institutions are recognising both the immense cashflow and exploration potential of the Wa Project and we welcome them onto our register.”