PERTH (miningweekly.com) – Gold and base metals developer OreCorp has raised A$13.56-million through a share placement to institutional and sophisticated investors to fund continued work at its Nyanzaga gold project, in Tanzania.
The company will place 45.2-million shares, at a price of 30c each, in a single tranche under its existing placement capacity.
The placement price represented a discount of 11.8% to OreCorp’s last closing price on May 14, and a 5.6% discount to the company’s 30-day volume weighted average share price.
The company on Tuesday said that following the share placement its cash position would increase to around A$26-million.
Proceeds from the placement will go towards the definitive feasibility study and relocation action plan studies for the Nyanzaga project, as well as for pre-development activities at the project.
Funds will also go towards further work at the Hobbes gold project, in Western Australia, including infill drilling and the potential expansion of the project area, as well as for general working capital.