Ongwe Minerals (TSX-V:OGW) has announced a C$10 million ($10.16 million) equity raising to fund exploration at its Namibian gold projects.
The company has entered into an agreement with Beacon Securities as sole bookrunner and Research Capital as co‑lead agent for a Listed Issuer Financing Exemption (LIFE) offering of 7.25 million common shares at C$1.38 per share.
The agents hold an option to purchase an additional 1.09 million shares at the same price for up to C$1.5 million in additional gross proceeds.
Ongwe will simultaneously complete a non‑brokered private placement of up to 2.17 million shares at C$1.38 per share for approximately C$3 million in additional proceeds.
Proceeds will be used for exploration primarily at its Namibian properties, as well as working capital and general corporate purposes.
Both offerings are expected to close on or about 25 June, subject to regulatory approvals, including conditional approval from the TSX-V.
Ongwe will pay agents a 6% cash fee on gross proceeds and issue compensation options for 6% of shares issued, exercisable at C$1.38 for 24 months.
Ongwe’s flagship assets include the Omatjete and Khorixas gold projects in Namibia’s Northwest Damara gold belt.
Omatjete lies along the regional Okondeka Fault Zone, which also hosts the Kokoseb gold deposit. Early surface work there uncovered the Manga Gold Prospect, a 4.5km by 1km gold‑in‑soil footprint, with scout drilling indicating gold in bedrock.
Located 60km west of Osino Resources’ Eureka gold project, the Khorixas Gold Project hosts two large‑scale surface discoveries, Belmont and K17. The Belmont prospect alone has a surface gold footprint of roughly 12km by 6km.
Write to JC Villarba at Mining.com.au
Images: Ongwe Minerals
