Managing director Richard Hyde told MNN the company had to undertake a “brutal scale-back” after demand dwarfed the completed $A12.5 million raising.

“I’ve never experienced anything like it,” Hyde said.

He attributed the strong new demand for shares in West African Resources (WAF) to both macro and project-specific reasons.

On the latter, North American investors reportedly see analogies between Roxgold’s high-grade Yaramoko project in Burkina Faso and the M1 area at WAF’s Tanlouka gold project (also in Burkina Faso), where a string of outstanding gold hits have been recorded in recent months.

Yaramoko, which is currently in development, has nearly 1 million ounces in indicated resources grading 15.8 grams per tonne.

Asked whether such a comparison was potentially valid, Hyde responded: “I think so, but it is still early days. It has got the same potential I think.”

The discovery last year of M1 has now seen WAF formally shelve previous plans to develop a low capital cost heap leach project in favour of a larger scale conventional CIL scenario now subject to feasibility work.

Investors in the $12.5 million raising (involving the issue of 100 million shares priced at 12.5c) apparently include a prominent, undisclosed North American institution, which will hold 7.8% of WAF.

The identity of the institution will be revealed when the statutory substantial shareholder notice (for shareholding of over 5%) is lodged.

Shares in WAF rose over 9% to 18c in morning trade, which on a pro forma basis capitalises the company at over $73 million.