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Ora Gold’s Share Purchase Plan Sees Strong Investor Demand

9 August 2023 13:20
ASX: OAU
Ora Gold SPP Closes Oversubscribed

Ora Gold Limited (ASX: OAU) has revealed the successful closure of its Share Purchase Plan (SPP),reporting an overwhelming response from its eligible shareholders, with the SPP garnering a staggering $5.905 million in valid applications, far surpassing its intended goal of raising up to A$1 million.

Substantial Response Exceeds Expectations

The Company stated that the SPP’s strong performance underlines the robust confidence investors have in Ora’s strategic direction and its flagship Crown Prince Prospect’s 479kt @ 3.6g/t gold resource.

Ora’s CEO, Alex Passmore, expressed gratitude for the enthusiastic response, stating, “The Board and I are pleased by the overwhelming support we have received from eligible shareholders for the SPP.”

The price of the newly offered shares was established at A$0.004 per share, with this price closely corresponding with the rate at which the Company recently conducted a A$2 million placement.

Despite strong support from eligible shareholders, oversubscription posed a challenge, with a scaling-back mechanism implemented, favouring retail shareholders over institutional, as detailed in last month’s ASX announcement.

Looking Forward

The funds raised from the SPP will be joined with capital generated from a prior placement completed in July 2023. This combined funding will be channelled towards further drilling and evaluation activities over the next three to six months, aimed at enhancing Ora’s Crown Prince Prospect.

Additionally, the funds will support regional exploration initiatives and bolster general working capital requirements.

“The funds raised from the SPP will be combined with the funds raised from the placement that was completed in July 2023 to be used for further drilling and evaluation over the next three to six months at the Company’s Crown Prince gold project, regional exploration and general working capital (including costs of SPP). The Company intends to use the remaining funds to support value creating initiatives,” Passmore stated.

OAU’s Australian Stock Exchange-listed share price is currently trading at 0.6c (12:45 pm UTC+ 8 hours).

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