Highlights

  • Turaco Gold secures A$120 million placement at A$0.60 per share to fund the Sodim buyout and advance Afema feasibility work.
  • Under a three-month option, Turaco will pay US$30 million cash plus shares and options valued at a headline US$79 million for Sodim's 20% interest.
  • Afema hosts a JORC resource of 4.65 million ounces and a Probable reserve of 1.91 million ounces at US$2,000 per ounce gold.
  • Shareholder approval is required for the consideration securities and the second placement tranche, with an extraordinary meeting expected in early December.

Turaco Gold has lined up the money to take full control of its flagship Afema gold project in south-east Côte d'Ivoire. The Perth-based explorer (ASX:TCG) received firm commitments for a A$120 million placement on 29 October 2026, two days after agreeing to buy out its joint venture partner, Sodim Ltd.

The Sodim Buyout

Turaco already holds 80% of Afema. Under the arrangement announced on 27 October, it paid Sodim a non-refundable US$3 million fee for a three-month option over the remaining 20%. If exercised, Turaco will pay US$30 million in cash and issue 55.1 million shares, escrowed for 12 months, plus 36.7 million unlisted options exercisable at A$1.00 and A$1.20. The company put the headline value at US$79 million, or about A$112 million.

On completion Turaco would own 100% of Afema, subject to the Ivorian Government's 10% non-contributing interest. The deal cancels roughly US$24 million of historical Sodim loans, a discovery payment of up to US$2.5 million and the existing shareholder agreements. Sodim retains a 0.33% net smelter return royalty, which Turaco can buy back for US$12.5 million before 30 June 2027. Further per-ounce payments are triggered if resources grow beyond defined thresholds.

Turaco calculated the price at about US$94 for each of the 837,000 attributable resource ounces it is acquiring — a figure based on the company's own valuation of the shares and options.

How the Placement is Structured

About 200 million new shares will be issued at A$0.60 each, a 12.4% discount to the last closing price. The first tranche of about A$97.1 million is unconditional, with settlement expected imminently. A second tranche of about A$23 million requires shareholder approval at the December extraordinary meeting. The placement is intended to fund the cash component of the Sodim deal, along with feasibility work, exploration and early development activity, leaving an estimated pro-forma cash balance of A$125 million once the acquisition completes. An eligible shareholder purchase plan of up to A$10 million at the same price is expected to open from 2 to 16 November.

What Afema Holds

Afema hosts a JORC mineral resource of 116.7 million tonnes at 1.3 g/t gold for 4.65 million ounces, of which 2.85 million ounces are Indicated and 1.81 million ounces are Inferred. A pre-feasibility study published in June 2026 supported a Probable ore reserve of 55.1 million tonnes at 1.1 g/t for 1.91 million ounces, using a US$2,000 per ounce gold price. The largest deposits are Woulo Woulo, Asupiri, Jonction and Anuiri. A royalty to the state-owned miner Sodemi, starting at 0.9%, will remain in place.

Risks and Next Steps

The transaction is not yet complete. It requires shareholders to approve both the consideration securities and the second placement tranche, and existing holders face dilution from the new shares and options. Afema has an ore reserve but no final investment decision, and its economics will be tested again in a definitive feasibility study due in the June quarter of 2027. Before then, Turaco plans to spend on detailed engineering, possible camp construction, site earthworks and further exploration. Shareholders will receive a notice of meeting in coming weeks.