TIDMORE
RNS Number : 8440O
Orogen Gold PLC
17 October 2012
17 October 2012
Orogen Gold Plc
("Orogen Gold" or "the Company")
Share placing and subscription by Directors raising GBP1.2
million
Highlights
-- GBP1.2 million raised secures funding for Deli Jovan gold
project into 2013 and covers earn-in to 75% of the project
-- The Board, in its entirety, has subscribed to the share placing
-- Additional funding will also allow more aggressive targeting of new project opportunities
Ed Slowey, Chief Executive of Orogen Gold comments:
"We are very pleased to have completed this successful placing
which represents a further strong show of support by the market in
the Company and its management. The funds will allow us to increase
our interest in the Deli Jovan gold project to 75% through
additional work on the property into 2013. Orogen Gold will also be
well placed to more aggressively follow through on new project
acquisition which will help to grow the Company.
Since our previous share placing last year, we have so far
completed the work programme at Deli Jovan in line with our work
plan, delivering the very encouraging underground and drill results
already reported. Further results from the drilling programme can
be anticipated within the coming weeks and we look forward to
reporting on those as they come through."
Share Placing
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, via XCAP Securities plc, 240,000,000 new ordinary shares
("Placing Shares") of 0.1p each ("Ordinary Shares") with investors
at a price of 0.5p per share thereby raising GBP1.2 million before
costs (the "Placing") for net proceeds to the Company of
approximately GBP1,135,000. The Placing Shares will represent
approximately 11.19 % of the Company's enlarged share capital.
Background to and Reasons for the Placing
Orogen Gold has an option to increase its current 55% interest
in the Deli Jovan gold project in Serbia to 75% by financing CAD2.0
million (Canadian Dollars) of exploration expenditure on the
project. The balance of the project is held by Canadian Listed
(TSX.V:RMC) Reservoir Minerals Inc.
The net proceeds of the Placing will be used, inter alia, to
continue to finance the ongoing exploration and evaluation
expenditures associated with the Deli Jovan gold project. Together
with existing cash resources, the net proceeds of the Placing
enable the Company to complete the Deli Jovan 75% earn-in.
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.
Directors' Participation
The Directors are participating in the Placing as follows:
Director Subscription Subsequent % of Enlarged
Shares Holding Share Capital
John Barry 4,000,000 120,555,491 5.62
------------- ------------ ---------------
Ed Slowey 4,000,000 119,555,491 5.57
------------- ------------ ---------------
Alan Mooney 4,000,000 83,270,327 3.88
------------- ------------ ---------------
Michael Nolan 4,000,000 83,270,327 3.88
------------- ------------ ---------------
Adam Reynolds 4,000,000 40,700,000 1.90
------------- ------------ ---------------
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 22 October 2012.
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 2,145,172,453 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
Website: www.orogengold.com +353 1662 8395
Zeus Capital Limited
Nominated Adviser and Joint
Broker
Corporate Finance: Ross Andrews +44 (0)161 831 1512
-----------------------
XCAP Securities Plc
Joint Broker
Jon Belliss +44 (0) 207 101 7070
-----------------------
Newgate Threadneedle
Financial PR
Guy McDougall/ Josh Royston/
Terry Garrett +44 (0) 207 653 9850
Notes to Editors
The Deli Jovan gold project is in eastern Serbia, the site
comprising two shallow underground gold mines at Rusman and
Gindusa, about 6 kilometres apart along a major shear zone.
Production at the mines was halted in the 1930s due to the
impending Second World War, and was never restarted. The mines lay
untouched for over 70 years until Orogen Gold reassessed, dewatered
and restarted exploration at Deli Jovan in 2011.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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