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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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