- Fortuna Mining Corp. (FSM, Financial) acquires a 15% stake in Awalé Resources Limited with a US$6 million investment.
- The strategic move aims to strengthen Fortuna's exploration pipeline in Côte d'Ivoire.
- Investor rights agreement secures pre-emptive and top-up rights for Fortuna, reinforcing their investment position.
Fortuna Mining Corp. (FSM) has completed a strategic investment in Awalé Resources Limited by acquiring a 15% stake through a non-brokered private placement. In this transaction, Fortuna purchased 15,037,593 common shares at US$0.399 per share, totaling US$6 million. This investment provides Fortuna with exposure to Awalé's 100% owned Odienné Project located in Côte d'Ivoire, aligning with its long-term growth strategy to enhance its exploration capabilities in West Africa.
The investor rights agreement accompanying the transaction offers Fortuna pre-emptive rights to maintain its stake in the company, as well as top-up rights to purchase additional shares. These rights are applicable as long as Fortuna holds a 10% or greater stake in Awalé, allowing for potential future expansion of its ownership contingent on positive exploration outcomes.
Fortuna's investment in Awalé reflects a broader industry trend of securing early-stage exploration assets through minority stakes, thereby mitigating financial exposure and minimizing exploration risks. This strategic move complements Fortuna's operations in the region, leveraging its experienced in-country exploration team for potential development and resource discovery.
