Orinoco hopes for expanded output in Brazil
PERTH (miningweekly.com) – ASX-listed gold developer Orinoco Gold was hoping to raise some A$6-million to accelerate production at its Cascavel project, in Brazil.
The company said this week that it would undertake a one-for-seven non-renounceable entitlement offer, priced at 17c each, to raise an initial A$5-million.
The entitlement offer would have one free-listed option attached to every three new shares subscribed for. The options could be exercisable at 25c each, and would expire at the end of January 2018.
A further A$1-million would be raised through a share placement to sophisticated an institutional investors.
Orinoco MD Mark Papendieck said that the capital raising would enable the company to create more value for shareholders in a shorter time frame.
“We now have immense confidence in the Cascavel gold mine and therefore it makes complete commercial sense to take maximum advantage of it by expanding production quickly.
“These funds will allow us to accelerate the planned mine development and expand our haulage capacity, meaning we will increased planned production by more than 50% in less than a year.”
Orinoco was hoping to increase production at Cascavel from the planned start-up rate of 40 000 t/y in the March quarter of 2016, to more than 60 000 t/y by the December quarter.
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