Canadian junior Awalé Resources has secured a strategic investment of C$8.26-million from precious metals miner Fortuna Mining.

The investment, announced on Friday sees Fortuna acquire a 15% stake in Awalé through a non-brokered private placement at a premium, with no warrants attached. Awalé will issue 15 037 593 shares at $0.399,or C$0.55 apiece — a 19% premium to the ten-day volume-weighted average trading price on the TSX-V as of May 27.

“We are extremely pleased to welcome Fortuna Mining as a strategic investor,” said Awalé CEO Andrew Chubb. “As an established and successful operator with a strong presence in West Africa and particularly in Côte d’Ivoire, Fortuna’s investment is a strong endorsement of our technical team, our exploration approach, and our clear vision for the Odienné district. This investment positions the company strategically as we launch intensive exploration on our 100%-owned ground.”

Proceeds will be used to accelerate exploration across Awalé’s 100%-owned 1 549 km² holdings within the Odienné project, which targets iron-oxide copper-gold (IOCG) style systems.

The investment also strengthens Awalé’s technical and strategic foundation. The companies will establish a joint technical advisory committee, and Fortuna will receive participation and top-up rights to maintain its pro-rata interest in future equity issuances and certain other share issuances.

The deal remains subject to TSX-V approval and other customary closing conditions. Closing is expected around June 20.

Should Fortuna’s ownership fall below 10% on an undiluted basis, the investor rights agreement will terminate.

Existing shareholders Newmont Ventures, a subsidiary of Newmont, and Orecap Invest retain their right to participate in future equity financings to maintain their ownership levels. 

Awalé has been systematically advancing the Odienné project, which spans 2 346 km² over seven permits, including 797 km² under the Awalé-Newmont joint venture. The company has identified four mineralised systems and recently launched exploration on its wholly owned ground.

The project is located in an underexplored yet prospective region, with multiple IOCG-style targets, and is supported by a seasoned technical team operating in a mining-friendly jurisdiction.