PERTH (miningweekly.com) – Junior Ora Gold will raise A$8.85-million in a fully underwritten renounceable rights issue to fund drilling work in Western Australia.
The company will undertake a three-for-one renounceable entitlement offer priced at 0.3c a share which will be issued with one free attaching new option for every four shares subscribed for, exercisable at 0.6c each within two years.
The issue price represented a 62.5% discount to Ora Gold’s last closing price and a 64.7% discount to the company’s ten-day volume weighted average share price.
In addition to funding exploration work at the Crown Prince gold prospect, funds would also go towards repaying loan facilities and evaluating new opportunities, as well as funding general working capital.
Meanwhile, Ora Gold on Monday also announced the appointment of Alex Passmore as CEO, effective on the completion of the entitlement offer, which is expected on March 9.
Passmore is a qualified geologist with extensive corporate experience, and was the MD of Rox Resources, a nonexecutive chairperson of Cannon Resources and a nonexecutive director of Pearl Gull.