ASX-listed OreCorpLtd. said May 5 that it is raising about A$16.2 million through a placementof up to 60 million ordinary shares at 27 Australian cents each to institutionaland sophisticated investors in Europe and Australia.
The company will use the proceeds to fund scoping and feasibilitystudies on its Nyanzagagold project in Tanzania. The company will also use the funds for exploration, permittingand licensing activities for the Nyanzaga project, follow-up drilling program onAkjoujt South gold-copper-nickelproject in Mauritania, as well as for general working capital.
Euroz acted as manager and global book runner for the placement.
The new shares would be allotted in two tranches, with the firstto comprise 28,353,205 shares and the second tranche 31,646,795 shares, which willbe subject to shareholder approval.
Upon completion of the placement, the company's cash positionwill increase to about A$18 million.