JOHANNESBURG (miningweekly.com) – Canadian resource company Orca Gold’s non-brokered private placement, aimed at raising $15-million through the issue of 37.5-million units at $0.40 apiece, has been fully subscribed to and is scheduled to close on Wednesday.
The TSX-V-listed company explained in a note on Friday that each unit would consist of one common share of the company and half of one common share purchase warrant, with each full warrant exercisable at $0.55 for 24 months from the date of closing.
The proceeds of the private placement will primarily be used to fund ongoing operations at the company's 70%-owned Block 14.
"With the recent discovery of a new water source near our Block 14 project, in Sudan, we are now conducting an extensive drill programme to expand the overall resource base of the project towards the completion of a feasibility study and a construction decision,” commented Orca Gold CEO Richard Clark.
He added that the government of Sudan had been “extremely supportive” of Orca’s efforts to develop a modern commercial gold mine in the country. “Over the past few years, we have witnessed Sudan's growing success in cultivating a positive relationship with its Gulf neighbours and the US, and we expect to soon see more of our international peers join us in uncovering the prolific gold endowment of this mineral-rich country."
The company has already initiated a feasibility study (FS), due for completion in the first quarter of next year, which will assist the company in reaching a development decision.
The FS programme will include 25 000 m to 30 000 m of drilling, aimed at further expanding the resource at the Galat Sufar South and Wadi Doum deposits.
Orca is mobilising six drill rigs to Block 14, with the first rigs due on site in the next week. The recently announced revised preliminary economic assessment demonstrates that the current designs of the openpits is restricted from going deeper owing to a lack of data and the limits of the existing resource model.
Once the company drills beyond the currently designed pit boundaries, it expects to significantly increase the resource base at Block 14 and to expand the openpits even further.