06/09/2017 - 12:46

Orinoco attracts $8m investment

06/09/2017 - 12:46

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Gold junior Orinoco has tapped investors for a near-$5 million capital raising and a $3 million investment by AngloGold Ashanti, as it progresses development of its Cascavel operation in Brazil.

Orinoco attracts $8m investment
Orinoco's Cascavel gold operation in Brazil.

Junior miner Orinoco Gold has tapped investors for a near-$5 million capital raising and a $3 million investment by AngloGold Ashanti, as it progresses development of its Cascavel operation in Brazil.

Perth-based Orinoco will launch a one-for-two entitlement issue at 2 cents per share to raise $4.9 million, which will be fully underwritten by Somers & Partners and sub-underwritten by AngloGold for $1 million, boosting the global miner’s stake in the company to 18.1 per cent.

AngloGold will also provide Orinoco with a $3 million pre-payment as part of its exploration earn-in commitment to the Perth company’s Faina project (which excludes Cascavel).

Orinoco chief executive Craig Dawson said the ongoing support of AngloGold reflected the long-term potential of the company’s assets.

“In addition to ensuring that we have sufficient working capital after the restart of the plant at Cascavel following the numerous operational improvements completed in recent months, the funds raised will also allow us to complete the acquisition of 100 per cent of Cascavel and prepare for our first high-impact exploration campaign under the earn-in agreement,” Mr Dawson said.

“We are excited about the opportunities in front of us and we are looking forward to working closely with AngloGold to realise the full potential of this project.”

Orinoco shares were Orinoco shares fell 28.5 per cent to 3.5 cents each at 12:45pm.

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