Australian exploration company West African Resources (WAF) is set to raise A$35m ($26.37m) through a placement of shares in order to secure funding for planned pre-development activities at the Sanbrado gold project in Burkina Faso.

WAF will issue a total of 109.375 million shares priced at A$0.32 ($0.24) per share as part of the placement.

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The company has received commitments from existing shareholders, as well as institutional investors from European, North American and Australian markets in support of the initiative.

"The demand for the placement is a strong endorsement of the quality of the Sanbrado gold project and our strategy to bring forward early development activities."

The activities currently proposed to take place at the project include the acquisition of underground access to the high-grade at M1 South deposit, in addition to the construction of on-site water storage and upgrading camp facilities.

Furthermore, proceeds from the placement are expected to be used to fast-track infill and extensional resource drilling at M1 South and M5, as well as expand the wider regional exploration programme.

WAF managing director Richard Hyde said: “The demand for the placement is a strong endorsement of the quality of the Sanbrado gold project and our strategy to bring forward early development activities, in particular commencing the underground decline into the high-grade M1 South deposit.

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“Accessing M1 South from the underground earlier will enable infill and extensional to continue in a more targeted and cost-effective manner.

“WAF is now well-positioned to deliver an updated feasibility study incorporating concurrent open-pit and underground mining this quarter, and press on towards the development of the project later this year.”

The company is anticipated to complete the revised feasibility study by the end of the second quarter of this year.