TIDMORE
RNS Number : 8424S
Orogen Gold PLC
28 November 2011
28 November 2011
Orogen Gold Plc
("Orogen" or "the Company")
Issue of Equity
Orogen Gold Plc (AIM:ORE), the AIM listed mineral exploration
company focussed on gold exploration and development of the Deli
Jovan gold project in Serbia, announces that it has conditionally
placed 231,160,000 new ordinary shares ("Placing Shares") of 0.1p
each ("Ordinary Shares") with investors at a price of 0.5p per
share thereby raising GBP1.16 million before costs (the "Placing").
The net proceeds from the Placing will provide additional working
capital which will be used, inter alia, to finance further
exploration expenditures on the Deli Jovan gold project.
The Placing Shares will represent approximately 12.17 per cent
of the Company's enlarged share capital.
Background to and reasons for the Placing
Orogen Gold has an option to earn 55 per cent of the Deli Jovan
gold project in Serbia from Canadian Listed (TSX-V) Reservoir
Capital Corporation by committing CAD1.5 million (Canadian Dollars)
of exploration expenditure on the project. The Company can earn a
further 20 per cent by committing an additional CAD2 million of
exploration expenditure on the project, which would bring Orogen's
total interest in Deli Jovan to 75%.
The net proceeds of the Placing will be used, inter alia, to
continue to finance the ongoing exploration expenditures associated
with the Deli Jovan gold project. Together with existing cash
resources the net proceeds of the Placing will enable the Company
to complete the majority of the total earn-in to the Deli Jovan
project.
The exploration programme has already achieved access to the
historic underground mines at Gindusa and Rusman. The on-going work
involves detailed mapping and sampling of the former mines to be
followed in Spring 2012 by an initial diamond drilling programme on
the property.
The net proceeds of the Placing will also enable the Directors
to continue to seek opportunities to introduce a new project or
projects to the Company. The Directors are seeking undervalued
early-stage gold projects with considerable technical merit which
have previously lacked management focus and which through effective
exploration programmes provide a high probability to build value in
the Company by making a successful commercial discovery.
Ed Slowey, Chief Executive of Orogen Gold comments:
"With our existing cash reserves and new funds raised we will be
able to complete the majority of the earn-in at Deli Jovan
including an initial diamond drilling programme."
"In the past twelve months we have accessed the two historic
gold mines at Gindusa and Rusman. In particular the Gindusa mine
workings show that this was a substantial mining operation in the
past. The reopening work now facilitates underground mapping and
sampling at both former mines which will be followed by a focused
diamond drilling programme scheduled for Spring 2012."
"We have also completed detailed soil sampling along the Deli
Jovan shear belt. This has identified several highly prospective
new gold targets for exploration follow-up."
"We are delighted with our progress so far on the project, which
is running to plan, and we anticipate further news over the coming
months as our exploration programme progresses."
Directors' Participation
The Directors are participating in the Placing as follows:
Mr John Barry, director, has subscribed for 3,200,000 ordinary
shares in the Company pursuant to the Placing. Following this
subscription, Mr Barry is interested in 116,555,491 ordinary shares
in the Company (representing approximately 6.13 per cent. of the
issued share capital).
Mr Ed Slowey, director, has subscribed for 2,200,000 ordinary
shares in the Company pursuant to the Placing. Following this
subscription, Mr Slowey is interested in 115,555,491 ordinary
shares in the Company (representing approximately 6.08 per cent. of
the issued share capital).
Balvairde Capital Limited, a company in which both Mr Alan
Mooney, director, and Mr Michael Nolan, director, have an interest,
has subscribed for 7,400,000 ordinary shares in the Company
pursuant to the Placing. Following this subscription, Mr Mooney is
interested in 82,970,327 ordinary shares in the Company
(representing approximately 4.37 per cent. of the issued share
capital) and Mr Nolan is interested in 82,970,327 ordinary shares
in the Company (representing approximately 4.37 per cent. of the
issued share capital)
Diablo Consulting Limited, a company in which Mr Adam Reynolds,
director, has an interest, has subscribed for 7,400,000 ordinary
shares in the Company pursuant to the Placing. Following this
subscription, Mr Reynolds is interested in 93,400,000 ordinary
shares in the Company (representing approximately 4.92 per cent. of
the issued share capital).
The Directors' participation in the Placing is a related party
transaction under the AIM Rules. Since all of the Directors are
participating in the Placing, there are no directors who are
independent of the transaction. The Company's nominated adviser,
Zeus Capital, considers the terms of the transaction are fair and
reasonable insofar as the Company's shareholders are concerned.
Issue of the Placing Shares
The Placing is solely conditional upon admission of the Placing
Shares to AIM ("Admission").
Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM. It is expected
that such Admission will become effective and that dealings will
commence on or around 1 December 2011.
The Placing Shares will, when issued, rank pari passu in all
respects with the existing Ordinary Shares, including the right to
receive dividends and other distributions declared following
Admission.
Total Voting Rights
For the purposes of the Disclosure and Transparency Rules, the
Company's total issued share capital following the completion of
the Placing will consist of 1,900,172,453 ordinary shares of 0.1p
each with one voting right per share. There are no shares held in
treasury.
The above figure may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest
in, the Company, under the Disclosure and Transparency Rules.
Enquiries:
Orogen Gold Plc
Ed Slowey, CEO
Alan Mooney, FD
+353 1662 8395
Zeus Capital Limited
Nominated Adviser and Joint Broker
Ross Andrews/Tom Rowley
+44 (0)161 831 1512
XCAP Securities Plc
Joint Broker
John Grant/Karen Kelly
+44 (0) 207 101 7070
Hansard
Financial PR
Guy McDougall/ Nicholas Nelson
+44 (0) 207 245 1100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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