07:17 AM EDT, 04/18/2024 (MT Newswires) -- Awale Resources ( AWLRF ) , which lost 14% yesterday, overnight Wednesday said it will raise about $10 million in a bought deal private placement.

The company, will will use the funds for its projects in Cote d'Ivoire and for general corporate purposes, will sell roughly 16.1 million units to a syndicate of underwriters at $0.62 per unit. Each unit consists of one Awale common share and one-half of one common share purchase warrant. The warrant entitles the holder to buy one Awale common share for 24 months after the offering closing at a price of $0.80.

The company's shares closed Wednesday at $0.67. In mid-March, the shares were trading as low as $0.18.

Canaccord Genuity is working on behalf of the underwriters who have the option to buy up to an additional 2.4 million units at the offering price. That would raise up to $1.5 million more for Awale and is exercisable up to 48 hours prior to the offering closing.

The offering is scheduled to close on or about May 8 and is subject to the satisfaction of certain conditions, including receipt of all regulatory approvals.