29-05-2025
- Business
- The Market Online
Fortuna Mining de-risks junior gold stock with new investment
Fortuna Mining (TSX:FVI), a gold and silver company across multiple emerging markets, invested C$8.25 million at C$0.55 per share into Awalé Resources (TSXV:ARIC), a copper-gold explorer in Côte d'Ivoire, representing a 15-per-cent stake in the company on an undiluted basis
Fortuna joins existing high-profile investors Orecap Invest and Newmont Corporation
Awalé Resources stock is down by 27.54 per cent year-over-year and 37.50 per cent since 2020
Fortuna Mining (TSX:FVI), a gold and silver company across multiple emerging markets, invested C$8.25 million at C$0.55 per share into Awalé Resources (TSXV:ARIC), a copper-gold explorer in Côte d'Ivoire, representing a 15-per-cent stake in the company on an undiluted basis.
Awalé will allocate the proceeds to continued exploration on its 2,346-square-kilometre Odienné project, which management believes to hold the potential for the discovery of West Africa's first major iron-oxide-copper-gold deposit.
Fortuna will form a joint technical advisory committee with Awalé, bringing its proven operational expertise in Côte d'Ivoire to the table, and be granted the right to maintain its pro-rata ownership, both privileges contingent on its investment remaining at a minimum of 10 per cent of issued and outstanding shares.
According to Thursday's news release, the transaction is expected to close by June 20, 2025, with shares subject to a customary four-month sale restriction.
Awalé will issue a news release should existing shareholders Orecap Invest (TSXV:OCI) and Newmont Corporation (TSX:NGT) elect to top up their stakes on the same terms. The latter's 797-square-kilometre Awalé-Newmont Joint Venture within the Odienné project has yielded four gold, gold-copper and gold-copper-silver-molybdenum mineralized systems to date. Leadership insights
'We are extremely pleased to welcome Fortuna Mining as a strategic investor,' Andrew Chubb, Awalé Resources' chief executive officer, said in a statement. 'As an established and successful operator with a strong presence in West Africa and particularly in Côte d'Ivoire, Fortuna's investment is a strong endorsement of our technical team, our exploration approach and our clear vision for the Odienné district. This investment positions the company strategically as we launch intensive exploration on our 100-per-cent-owned ground.' About Awalé Resources
Awalé is a mineral exploration company dedicated to discovering large high-grade gold and copper-gold deposits in mining friendly Côte d'Ivoire.
Awalé Resources stock (TSXV:ARIC) is up by 16.28 per cent on the news trading at C$0.50 as of 10:17 am ET. The stock is down by 27.54 per cent year-over-year and 37.50 per cent since 2020.
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