OreCorp to raise $13.5m

Gold explorer OreCorp has launched a $13.56 million share placement, with majority of the proceeds to fund development of the company’s recently acquired Nyanzaga gold project in Tanzania.

OreCorp said the funds raised would ensure its ability to make the final $US8 million ($A12.3 million) payment to former Nyanzaga joint venture partner Barrick Gold, which previously operated the project alongside Acacia Mining, acquired by OreCorp last October.

The acquisition followed contentious dispute after the Tanzanian government sought to amend rules governing foreign investment in mining.

Subiaco-based OreCorp today said it was looking to complete definitive feasibility and relocation action plan studies as well as pre-development activities for the Nyanzaga project.

The company is also looking to expand its Hobbes project, located approximately 130 kilometres north-east of Kalgoorlie, with some of the placement proceeds to fund infill drilling at the site.

The capital raising will bring OreCorp’s cash position to around $26 million – of which $12.3 million is set aside to make the final Nyanzaga acquisition payment to Barrick.

OreCorp will issue 45 million shares priced at 30 cents each, with Euroz acting as lead manager and bookrunner to the placement.

Its shares were up 1.5 per cent at 11:45am AEST to trade at 34 cents.

Fellow gold explorer Riversgold has also announced a placement today.

The Cottesloe-based explorer is issuing around 139.3 million shares priced at 1.1 cents each along with one free attaching unlisted option, exercisable at 3 cents per share.

Funds raised from the placement will be used in the company’s upcoming exploration program at its Kurnalpi project, in the Eastern Goldfields region.

Hartleys is acting as lead manager to the placement.

Riversgold is trading 112 per cent higher at 34 cents per share, as at 2:55pm AEST.