Orogen Gold PLC Drilling for Equity Agreement (9880K)
01 Juli 2014 - 8:00AM
UK Regulatory
TIDMORE
RNS Number : 9880K
Orogen Gold PLC
01 July 2014
Orogen Gold plc
("Orogen" or the "Company")
Drilling for Equity Agreement
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, has completed an agreement with DEM Geosciences SAL
("DEM"), a Lebanese registered company, for the provision of
diamond drilling services to the Company.
Highlights:
-- Option for up to 10,000 metres of diamond drilling at a fixed price in 2014 and 2015
-- Part payment in equity of approximately 55% of direct drilling consideration
-- Ordinary shares of 0.1p to be issued for completed drilling
work priced at 0.2p per share (the "Subscription Shares")
-- The issue price of 0.2p per share represents a significant premium to the recent share price
-- The Subscription Shares will be subject to a 24 month lock-in period
Ed Slowey, Chief Executive of Orogen, commented: "We are very
pleased to announce the agreement with DEM that secures access to
drilling capabilities and helps maintain cash resources within the
Company. We view the agreement, which prices the shares to be
issued at a substantial premium to the recent share price, as a
vote of confidence by DEM in Orogen over the medium to longer
term."
Agreement
The Company has agreed the option to contract up to 10,000
metres of diamond drilling to be completed in 2014 and 2015 at a
fixed price.
The Subscription Shares will be issued to DEM in stages at an
issue price of 0.2p per share following the completion of
contracted drilling milestones. The Subscription Shares represent
approximately 55% of the direct consideration of the drilling costs
to be paid to DEM.
The total consideration per metre is at a market competitive
price and at an overall discount to the cost per metre of the
Company's most recent drilling programmes.
About DEM
DEM is an established geotechnical engineering group with
extensive core and RC drilling experience in Eurasia and Eastern
Europe.
-ENDS-
Enquiries:
Orogen Gold plc +353 1662 8395
Ed Slowey, CEO
Alan Mooney, FD
WH Ireland Limited (Nominated Adviser and
Broker) +44 (0) 20 7220 1666
Tim Feather
James Bavister
Hume Capital Securities plc (Joint Broker)
Jon Belliss
Walbrook (Public Relations and Investor +44 (0) 20 3693 1470
Relations) +44 (0) 20 7933 8780
Paul Cornelius/ Guy McDougall
About Orogen Gold
Orogen Gold plc is a UK public company quoted on the London
Stock Exchange AIM market (ticker: ORE). The Company is focused on
mineral exploration and development in Europe and is currently
operating two gold exploration projects: a) at Mutsk in Armenia and
b) at Deli Jovan in Serbia. The Mutsk gold project in Armenia was
optioned by Orogen early in 2013 to follow-up reports of a new
epithermal discovery within an established gold district. At Deli
Jovan the historic high-grade gold mining camp was last in
production prior to World War II and has been significantly
under-explored in modern times.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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