ORE Orogen

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RNS Number : 2471R

Orogen Gold PLC

10 September 2014

10 September 2014

Orogen Gold Plc

("Orogen" or "the Company")

Placing raising GBP1.125 million for further drilling at Mutsk gold project in Armenia

Orogen Gold (AIM: ORE), the AIM quoted gold exploration company, announces that it has through Hume Capital Securities plc conditionally placed 1,022,727,272new ordinary shares of 0.1p each ("Ordinary Shares") (the "Placing Shares") with existing and new investors at a price of 0.11p per share, raising GBP1,125,000 before expenses (the "Placing"). The net proceeds of the Placing will provide additional working capital which will be used, inter alia, to advance the Company's exploration programme over its highly prospective Mutsk gold project in Armenia (the "Mutsk project").

The Placing Shares will represent approximately 29.92 per cent. of the Company's enlarged share capital.

Ed Slowey, Chief Executive of Orogen, comments:

"The strong drilling results reported earlier this week from the Mutsk project, including wide intervals of gold mineralisation, are very encouraging. Indications are that gold distribution is extensive. It is clear at this stage that the project warrants a further drilling programme both to explore the limits of the mineralisation and to undertake infill drilling that can define a maiden resource. This new funding can help bring us towards this goal and we will work actively towards these twin aims over the coming weeks and months."

Rationale for the Placing

The net proceeds of the Placing will enable the Company to progress with additional drilling at the Mutsk project, where recently announced assay results and on-going drilling confirm the discovery of further gold-bearing zones. New intersections reported include 60m @ 1.21g/t Au, including 10m @ 3.11g/t Au, with additional zones of hydrothermal alteration and pyrite mineralisation being investigated up to 1.6km from the new discovery.

Orogen has an exclusive agreement with JV partner, Georaid CJSC, to earn an 80% interest in the Mutsk project by spending a total of US$2.5m by the end of August 2016.

Issue of 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 Admission will become effective and that dealings will commence in the Placing Shares on or around 16 September 2014.

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 3,418,566,392 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 
-----------------------------------------  --------------------- 
 Hume Capital Securities Plc (Joint 
  Broker)                                   +44 (0) 20 3693 1470 
 Jon Belliss 
-----------------------------------------  --------------------- 
 Walbrook (Public Relations and Investor 
  Relations)                                +44 (0) 20 933 8780 
 Paul Cornelius / Guy McDougall 
-----------------------------------------  --------------------- 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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