PERTH (miningweekly.com) – Gold developer OreCorp on Friday told shareholders that it had issued the first 65.5-million ordinary shares to domestic and overseas institutional and sophisticated investors, raising A$52.4-million of a planned A$56-million capital raise.
OreCorp earlier this month announced plans for the institutional placement, priced at 80c each, to fund the development of its Nyanzaga gold project, in Tanzania.
The ASX-listed company noted on Friday that the remaining 4.5-million shares subscribed for under the placement would be issued on the receipt of proceeds, which is anticipated next week.
Proceeds from the capital raise will go towards the development of the Nyanzaga gold project, following the approval by the Tanzanian Cabinet of Minister of a special mining licence.
The Nyanzaga project is expected to produce some 213 000 oz/y over a mine life of 12 years, with OreCorp expected to invest some $287-million to bring the project into production.
The funds would allow OreCorp to complete a definitive feasibility study, pre-development activities, and would fund exploration activities at OreCorp’s Western Australian assets and general working capital.