Santa Fe Raises $1.2M at 61% Premium to Acquire Côte d’Ivoire Gold Project
Santa Fe Minerals Limited has entered binding agreements to acquire the promising Eburnea Gold Project in Côte d’Ivoire from Turaco Gold Ltd, backed by a $1.2 million capital raise at a significant premium. The acquisition positions Santa Fe to advance exploration on high-grade gold mineralisation zones with substantial growth potential.
- Acquisition of Eburnea Gold Project including Satama Permit (100%) and Bouake North Application (65%-90%)
- Historic drilling highlights high-grade gold intercepts up to 26m @ 4.82g/t Au
- Placement of 24 million shares at $0.05 each, a 61.3% premium, to raise $1.2 million
- Transaction subject to ASX and shareholder approvals with completion targeted for late August 2025
- Performance rights issued tied to JORC resource milestones incentivising exploration success
Strategic Acquisition in West Africa
Santa Fe Minerals Limited has announced a significant step forward with the binding agreements to acquire the Eburnea Gold Project in Côte d’Ivoire from Turaco Gold Ltd. This acquisition includes full ownership of the Satama Permit and a majority stake in the Bouake North Application, with options to increase ownership up to 90%. The project is situated within a prolific gold-bearing greenstone belt, offering promising exploration upside.
The Eburnea Project’s Satama Permit boasts a mineralised corridor extending over 20 kilometres, with historic drilling revealing substantial gold mineralisation. Notably, a standout intercept of 26 metres at 4.82 grams per tonne gold underscores the project's potential. The Bouake North Application lies along strike from Endeavour Mining’s Lafigue Gold Mine, a 3 million ounce deposit, further highlighting the regional prospectivity.
Capital Raise and Transaction Structure
To fund the acquisition and exploration activities, Santa Fe has secured binding commitments for a placement of 24 million shares at $0.05 each, raising $1.2 million before costs. This price represents a 61.3% premium to the company’s last closing price, signaling strong investor confidence. The placement, alongside existing cash reserves, will underpin an aggressive exploration program targeting resource definition and expansion.
The transaction involves issuing 12 million shares and 4 million performance rights to Turaco Gold as consideration, with the performance rights contingent on achieving JORC-compliant resource milestones of 500,000 and 1,000,000 ounces of gold respectively. Additionally, directors will receive shares and performance rights subject to shareholder approval, aligning management incentives with project success.
Exploration Outlook and Next Steps
Santa Fe plans to build on the extensive exploration work completed by Turaco Gold, which included soil geochemistry, geophysical surveys, and significant aircore and reverse circulation drilling. The company intends to conduct further infill and deeper drilling to delineate higher-grade shoots within the Satama Main Zone and test parallel mineralised structures identified by geophysics.
Shareholder approval is scheduled for August 2025, with completion and share issuance expected shortly thereafter. The company also aims to adopt an employee securities incentive plan to support ongoing exploration efforts and retain key personnel.
While the acquisition is subject to multiple conditions precedent, including regulatory consents and shareholder votes, the deal strategically positions Santa Fe to capitalize on a highly prospective gold project in a well-established mining jurisdiction.
Bottom Line?
Santa Fe’s acquisition and premium placement set the stage for a pivotal exploration phase that could redefine its growth trajectory.
Questions in the middle?
- Will Santa Fe successfully convert performance rights into shares by meeting resource milestones?
- How will further drilling refine the understanding of mineralisation continuity and grade?
- What impact will the acquisition have on Santa Fe’s share dilution and valuation post-placement?
