Ora Gold are looking to keep up its recent momentum, having just launched a $3 million dollar capital raising to fund future exploration at the Garden Gully Project’s Crown Prince Prospect which continues to deliver high-grade gold results.
The Company has already received firm commitments from a number of institutional and sophisticated investors to raise an initial $2 million dollars (before costs) through the issuing of 500,000,000 fully paid ordinary shares in the Company at a price of $0.004 per New Share.
The remaining million dollars will be raised through a share purchase plan for existing shareholders, allowing current eligible shareholders to subscribe for up to a maximum of $30,000 worth of fully paid ordinary shares at the same $0.004 price offered in the placement.
The Company anticipates that the new shares offered under the placement to be issued on or around next Wednesday the 12th of July, with the share purchase plan opening the following Friday and closing on the 4th of August 2023.
Funding the Crown Prince
Following the two-pronged capital raising, Ora estimates that it will have ~$3.95 million in the bank to finance further drilling and evaluation at the Company’s Crown Prince Gold Project following up on a number of compelling drill results from the Prospects South East Ore Body which recently showed grades up to 72.75g/t gold.
Figure 1: Significant gold intercept within the first diamond drill core from OGGDD536 at SEB and the newly interpreted structural setting at Crown Prince Prospect
Funds in particular will be put towards an additional drilling campaign planned to target mineralisation between 100m and 300m, which the Company expects to be comprised of further RC drilling and an additional diamond drill hole.
Having repeatedly delivered high-grade gold results, the Company considers the South East Ore Body to be a key growth area for Crown Princes 479kt @ 3.6g/t gold resource, with a resource estimation now underway at the South East Ore Body to allow for its inclusion in an update to the prospects resource planned for September.
While funding further exploration at Crown Prince will be the primary use for proceeds from the raising, funds will also be put towards advancing exploration at Ora’s regional targets and for general working capital, with remaining funds being put towards supporting value-creating initiatives.
The Company said that following the recent exceptional results from exploration at Crown Prince, investors are now starting to take note of the prospect’s strong economic potential.
“We are pleased to report a very high level of demand for the placement which was initiated following approaches by new cornerstone investors,” Chief Executive Alex Passmore said.
“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. This drilling is expected to underpin a solid resource estimate for the Project when completed later this year.”
OAU’s Australian Stock Exchange-listed share price was trading at 0.5c today (10:35 am UTC+ 8 hours).