Orogen Gold PLC Fund raising to accelerate drilling at Mutsk (7031P)
04 Oktober 2013 - 8:00AM
UK Regulatory
TIDMORE
RNS Number : 7031P
Orogen Gold PLC
04 October 2013
Orogen Gold Plc
("Orogen" or "the Company")
Placing raising GBP0.65 million to accelerate drill testing of
the exciting Mutsk gold project in Armenia
Orogen (AIM:ORE), the AIM quoted gold exploration
company,announces that it has conditionally placed 216,666,667 new
ordinary shares ("Placing Shares") of 0.1p each ("Ordinary Shares")
with existing and new investors at a price of 0.3p per share,
raising GBP650,000 before costs (the "Placing"). The net proceeds
of the Placing will provide additional working capital which will
be used, inter alia, to accelerate the Company's exploration
programmes over its highly prospective Mutsk gold property in
Armenia.
The Placing Shares will represent approximately 9.04 per cent of
the Company's enlarged share capital.
Ed Slowey, Chief Executive of Orogen Gold comments:
"We have had an excellent start to our drilling campaign at
Mutsk with the first shallow drill holes returning higher gold
grades than expected near surface over considerable widths. These
new funds will provide us with a strong base from which to plan our
2014 work programme, and will also allow us to re-commence drilling
during the remainder of this Autumn season. We are pleased with the
continuing support of our shareholders and look forward to updating
the market with further progress reports and drill results from
both Armenia and Serbia over the coming months."
Rationale for the Placing
The net proceeds of the Placing will enable the Company to
progress with further drilling at the Mutsk gold project, Armenia,
where the Directors are seeking to deliver increased shareholder
value by targeting a maiden resource within 2014. Orogen has an
exclusive agreement with JV partner, Georaid CJSC, to earn an 80%
interest in the property by spending a total of US$2.5m by the end
of August 2016.
Orogen recently announced highly positive preliminary drilling
results from Mutsk, with assay intervals including 11.0m @ 5.56g/t
Au and 10.2m @ 5.73g/t Au. The Company has confirmed a mineralised
zone over almost 1km of strike, with possible extension to
2km+.
Directors' Participation in the Placing
Each of the Directors has agreed to subscribe for 6,666,667
Placing Shares and their resulting holdings following the Placing
will be as follows:
Director Shareholding following % of enlarged
Placing share capital
John Barry 127,222,158 5.31
Ed Slowey 126,222,158 5.27
Alan Mooney 89,936,994 3.75
Michael Nolan 89,936,994 3.75
Adam Reynolds 47,366,667 1.98
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 24 October 2013.
The Placing Shares will, when issued, rank pari passu in all
respects with the existing Ordinary Shares.
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 2,395,839,120 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 +353 1662 8395
Ed Slowey, CEO
Alan Mooney, FD
WH Ireland Limited (Nominated Adviser and Joint
Broker) +44 (0) 20 7220 1666
Tim Feather
James Bavister
XCAP Securities plc (Joint Broker) +44 (0) 20 7101 7070
Jon Belliss
Walbrook (Public Relations and Investor Relations) +44 (0) 20 933 8780
Bob Huxford/ Guy McDougall (Public Relations)
Paul Cornelius (Investor Relations)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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