Junior explorer Ora Gold (ASX:OAU) has tapped investors for $3 million through a placement and share purchase plan (SPP) to fund exploration work at its Crown Prince prospect in Western Australia.
Under the placement, Ora plans to issue 500 million new shares at $0.004 per share to private investors to raise $2 million. The company, which has a $23.62 million market capitalisation, says it has received firm commitments for this placement.
Ora will also give retail investors a chance to top up their shareholdings through the share purchase plan, under which eligible investors can subscribe for up to $30,000 worth of new shares at the same price as the placement to raise up to $1 million.
Speaking on the capital raising, Ora Gold CEO Alex Passmore says: “Following recent exceptional exploration results from both shallow RC drilling and deeper diamond drilling at the SEB zone of the Crown Prince prospect, the likely strong economic potential of the project is starting to be appreciated.
“The capital raising positions the company strongly and sets us up for a very busy and positive second half of 2023″
We are pleased to report a very high level of demand for the placement, which was initiated following approaches by new cornerstone investors. The capital raising positions the company strongly and sets us up for a very busy and positive second half of 2023.
We look forward to continuing to drill and delineate new mineralisation at the Crown Prince prospect. The company’s focus for coming months will be on RC drilling between 50m and 300m vertical depth. This drilling is expected to underpin a solid resource estimate for the project when completed later this year.”
The Crown Prince prospect forms part of Ora’s flagship Garden Gully Gold Project in Western Australia’s Abbots Greenstone Belt.
With the help of the fresh funds, Ora plans to kick off further drilling and evaluation at the prospect alongside regional exploration work in the area.
The placement shares are expected to settle on Wednesday 12 July, with the SPP to open on 14 July and close on 4 August.
Ora Gold is an explorer and project developer with a ‘substantial’ package of tenements in WA’s Murchison goldfield near Meekatharra. The company’s Garden Gully project comprises a 217sq-km land package and is home to multiple gold prospects.
Ora Gold says following the completion of the $3 million capital raise, it will have a cash balance of roughly $3.95 million.
Write to Joshua Smith at Mining.com.au
Images: Ora Gold Ltd
