Orinoco raises $12m

Junior miner Orinoco Gold has announced a $12.1 million capital raising to target a ramp-up in production at its Cascavel operation in Brazil.

The company has issued 115 million shares at 12 cents each, with strong demand from sophisticated investors.

The placement comprises $8.5 million of new money and $3.6 million in lieu of a $US2.8 million payment due to the company’s joint venture partner.

Investors will receive a free listed option on a one-for-three basis, exercisable at 11 cents with an expiry in 2020.

Orinoco chairman Joseph Pinto said the placement allowed the company to progress its Cascavel operation.

“With a strengthened balance sheet and lower cost base, Orinoco has now established a very robust platform to aggressively pursue our planned gold production ramp-up and exploration program over the coming months,” he said

“I am also very pleased that our Brazilian joint venture partners have increased their combined ownership in the group from 4 per cent to 8 per cent as part of this raise.

“We value strong in-country local partners and look forward to a closer working relationship going forward.

“We are thrilled by the ongoing support of existing and new shareholders in this share placement and hope to return their faith with results from our back-to-basics approach.”