The International Finance Corporation (IFC) is planning to invest up to $8 million in Volta Resources (VTR-T), a gold explorer with projects in Ghana and Burkina Faso.
The IFC, a member of the World Bank Group, has signed a proposal letter to invest up to $4 million to start off.
Under the terms, it would acquire about 5.4 million units at 74¢ apiece. Each unit consists of one share and half a warrant.
Warrants are exercisable at $1.03 for five years, but the expiry date will be accelerated if Volta’s volume weighted share price tops $1.55 for 15 days.
The IFC has the option to invest up to $4 million more at a minimum amount of $1 million. The unit price of a future investment will be based on an agreed-upon formula.
The IFC says it aims to invest in companies with projects that are technically sound, have good prospects of being profitable and will benefit the local economy. The proceeds of the investment would be mainly used to finance Volta’s flagship Kiaka project in Burkina Faso.
Volta bought Kiaka from Randgold Resources (GOLD-Q, RRS-L) in November at which time it started a 22,000-metre drill program that should be finished by the end of April 2010.
The company aims to both extend the mineralization discovered by Randgold and do some infill drilling, and complete a National Instrument 43-101 resource estimate by next June.
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