PERTH (miningweekly.com) – ASX-listed gold developer OreCorp would raise some A$16.2-million through a share placement to institutional and sophisticated investors in Europe and Australia, to fund scoping and feasibility studies on its Nyanzaga gold project, in Tanzania.
The company said on Thursday that up to 60-million shares would be issued at a price of 27c each to raise the capital.
The new shares would be allotted in two tranches, with the first falling under the company’s current placement capacity, and not requiring shareholder approval. The second tranche of some 31.64-million shares would be subject to shareholder approval.
A shareholder meeting to approve the second tranche placement would be called as soon as possible.
CEO and MD Matthew Yates told shareholders that he was delighted with the support received from institutional investors, who clearly recognised the quality of the Nyanzaga gold project.
“The funds will allow OreCorp to rapidly advance the scoping and feasibility studies for Nyanzaga, and to aggressively pursue exploration programmes at both Nyanzaga and the Akjoujt South project.”