PERTH (miningweekly.com) – ASX-listed OreCorp will undertake an institutional placement to raise A$13.3-million to help fund the acquisition of the Nyanzaga gold project, in Tanzania, and to fund drilling at the Hobbes prospect.
The company on Friday said that 53.1-million shares, at a price of 25c each, will be placed to domestic and overseas institutional and sophisticated investors, with Euroz acting as sole lead manager and bookrunner for the placement.
The new shares will be placed under OreCorp’s existing placement capacity, with no shareholder approval required.
The funds will increase OreCorp’s cash position to approximately A$22-million, and will ensure that the company is in a strong position to complete the acquisition of the Nyanzaga project, and to pursue exploration programmes at its various projects.
OreCorp earlier this year earned an initial 25% stake in Nyanzaga through a $14-million earn-in agreement with project partner Acacia Mining, and acquired the outstanding interest in the project for $11.5-million.
The Nyanzaga project is currently estimated to host a mineral resource of 3.1-million ounces, grading 4 g/t gold.
A 2017 prefeasibility study estimated that the project could produce 213 000 oz/y over a 12-year mine life, with pre-production costs estimated at $287-million and all-in sustaining costs at $838/oz.