Ora Gold Successfully Raises $5 Million to Boost Crown Prince Prospect

2 November 2023 11:37

Ora Gold Limited (ASX: OAU) has successfully secured firm commitments from both new and existing institutional and high-net-worth investors, enabling the Company to raise $5 million via a placement of 833,333,333 fully paid ordinary shares at an issue price of $0.006 per New Share, marking a significant milestone to expedite resource growth and advance technical programs at the Crown Prince Prospect within the Garden Gully Gold Project.

Investor Confidence on the Rise

The decision to embark on this Placement was strategically timed, aligning with a surge in investor enthusiasm following the recent release of exceptional exploration results from the Crown Prince Prospect.

This includes standout examples such as OGGSRC574 and OGGSRC579, with OGGSRC574 yielding intersections of 910 g/t of gold and 15.74 g/t of gold, and OGGSRC579 revealing significant gold concentrations of 6.44 g/t and 2.7 g/t, exceeding expectations.

The New Shares issued under the Placement will be offered at $0.006 per share, representing a 25.0% discount to Ora’s last trading price and a 17.3% discount to the 15-day volume-weighted average market price for Ora’s shares.

Ora Gold’s CEO Alex Passmore emphasised the importance of this financial milestone.

“While work on the ground continues to deliver with shallow SLRC and deep RC drilling ongoing at Crown Prince, we are pleased to have completed an efficient and well-bid capital raising to fund project work going forward,” he said.

He additionally expressed gratitude to both new and existing shareholders for their support, highlighting the importance of these funds for the Company’s strategic goals.

Utilisation of Funds

The $5 million Placement will be strategically employed with a primary focus on accelerating ongoing and planned drilling, exploration, and technical programs at the Crown Prince Prospect. This includes resource definition, extensional and regional exploration drilling, metallurgical testwork, geotechnical drilling, and hydrogeological investigations.

This capital injection is expected to fortify Ora Gold’s position in executing its dual-track strategy. Additionally, it will enable the Company to intensify its efforts in testing for extensions of high-grade gold mineralisation at Crown Prince, ultimately working towards defining a high-grade gold resource.

Secondly, the funds will support detailed technical programs such as metallurgy, geotechnical analysis, and hydrogeological studies, all of which are vital in creating a strong value proposition for the Crown Prince Project.

Future Outlook

Upon the completion of this Placement, Ora Gold will possess a cash balance of approximately $6 million, which will further bolster its ability to execute its strategic objectives.

Mr Passmore said the Placement positions Ora Gold well to continue to deliver ongoing drill results, an updated Mineral Resource estimate at Crown Prince and other key de-risking technical programs.

“We look forward to continuing to drill and delineate new mineralisation at the Crown Prince Prospect over the coming months,” he said.

“The Company’s immediate focus will be on RC drilling between 50 metre and 300 metre vertical depth to test extensions of high-grade gold mineralisation along strike and down dip at Crown Prince.”

OAU’s Australian Stock Exchange-listed share price was trading at 0.007 today (11:30 am UTC+ 8 hours).

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