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OreCorp targets A$13.3M to fund Nyanzaga gold project deal, work at Hobbes

OreCorp Ltd. outlined plans to raise A$13.3 million mainly to acquire a 100% interest in the Nyanzaga gold project in Tanzania and conduct further work on the Hobbes gold project in Western Australia. Proceeds will also go toward exploration and general working capital.

The company said Aug. 16 that the offering, comprising 53.1 million common shares at 25 Australian cents apiece, will increase its cash position to about A$22 million.

OreCorp completed a 51% joint venture earn-in on the Nyanzaga project in July and signed a binding agreement with Acacia Mining PLC to increase its stake to 100% by paying a further US$7 million.