PERTH (miningweekly.com) – Gold developer OreCorp will raise A$56-million through an institutional placement to fund the development of its Nyanzaga gold project, in Tanzania.
The company on Thursday announced that it would place 70-million shares at a price of 80c each to domestic and overseas institutional and sophisticated investors. The placement will be conducted under the company’s existing placement capacity.
The offer price of 80c a share represented a 15.3% discount to the company’s last closing price, and a 13.8% discount to its five-day volume weighted average share price.
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.