PERTH (miningweekly.com) – Gold developer Orinoco Gold has raised A$1.1-million through a share placement to advance its Cascavel project, in Brazil.
The miner told shareholders on Friday that it had placed some 15.7-million shares, at 7c each, along with one free attaching option exercisable at 11c each. The options would be issued on a one-for-one basis.
The shares would be placed to new and existing sophisticated and professional investors.
Funds raised would be used to finalise the preparation of detailed mining plans for the Cascavel project, while Orinoco secured debt funding to start mining under a recently-announced fast-track development plan.
The development of Cascavel would require a capital injection of some $6.6-million for an initial 40 000 t/y operation using a gravity circuit capable of achieving gold recoveries of between 80% and 90%.
Meanwhile, shareholders would also be able to take part of a share purchase plan (SPP), with each shareholder entitled to apply for some A$15 000 worth of new shares, priced at 7c each, with the SPP capped at A$1-million.
Orinoco was hoping to secure a suitable funding package to develop Cascavel by the first quarter of 2015.