The ASX-listed company on Friday said it had received firm commitments for the placement of seven-billion shares, at a price of 0.1c each. Participants in the share placement will also be offered one free attaching listed option, each exercisable at $0.0015 and expiring in January 2024.

The placement will be completed in two tranches, with the first tranche comprising some 1.8-billion shares to be issued under the company’s existing placement capacity.

Tranche 2 of the placement comprises 5.2-billion shares and will be issued subject to shareholder approval. The grant of options pursuant to the placement is also subject to shareholder approval.

Shareholder approvals will be sought at the company’s annual general meeting, which is expected to be held in early November 2021.

Funds raised from the placement will be allocated to development and commercialisation of the Giro gold project, providing working capital and to pay for the costs of the placement. Funds will also be reserved for repayment of a A$2.1-million convertible note held by Neo Gold, if Neo elects to be repaid the convertible note amount.

The convertible note matures in January 2022.

Amani is undertaking an assessment of its Giro gold project with the goal of accelerating the development or commercialisation of the deposit. This work has included a number of desktop studies in relation to the Kebigada deposit as well as a consideration of potential business development and corporate opportunities.