Ora Gold (ASX:OAU) is raising $5 million through a share placement to support drilling, exploration, and technical programs at its Crown Prince gold prospect in Western Australia.
Under the placement to sophisticated and institutional investors, Ora plans to issue about 833 million fully paid ordinary shares at $0.006 per share to raise the funds.
The issue price represents a 25% discount to Ora’s last trading price and a 17.3% discount to its 5-day volume weighted average price (VWAP).
Canaccord Genuity and Argonaut Securities have been appointed lead managers to the placement.
Ora anticipates the new shares will be issued on or around 9 November 2023.
The $38.3 million market capitalisation company says the activities to be funded by the capital raise will include exploration drilling, metallurgical testwork, and reporting, alongside general working capital.
The Crown Prince prospect is part of Ora’s wider Garden Gully Gold Project.
Ora Gold Chief Executive Officer (CEO) Alex Passmore says the placement was ‘strongly’ supported by investors, and the company is pleased to have completed an ‘efficient and well-bid’ capital raising to fund project work.
“The placement positions Ora well to continue to deliver ongoing drill results, an updated Mineral Resource Estimate (MRE) at Crown Prince and other key de-risking technical programs such as metallurgical testwork, geotechnical and hydrogeological investigations, and reporting.
We look forward to continuing to drill and delineate new mineralisation at the Crown Prince prospect over the coming months. The company’s immediate focus will be on RC drilling between 50m and 300m vertical depth to test extensions of high-grade gold mineralisation along-strike and down-dip at Crown Prince.”
“he company’s immediate focus will be on RC drilling between 50m and 300m vertical depth to test extensions of high-grade gold mineralisation along-strike and down-dip at Crown Prince”
The company notes following the completion of the placement, it will have a cash balance of around $6 million.
Ora Gold is a mineral explorer and developer with a ‘substantial’ package of tenements in the Murchison goldfield near Meekatharra, Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Ora Gold