Oroya Mining Ltd has announced a renounceable rights issue of 97.4 million shares to raise almost $1.6 million at 1.6c each for exploration of the company's mineral interests in Western Australia, Victoria and New South Wales.
The offer is fully underwritten by Patersons Securities Ltd, which will also act as lead manager to the deal, and with Ernst & Young acting as auditor. The company has incorporated a top-up facility to allow eligible shareholders to apply for additional shares and attaching options in excess of their entitlement at the issue price.
The prospectus is expected to be launched today, with rights trading to commence on July 13 and close on July 27.
An announcement to the stock exchange is pasted below.
Oroya Mining Limited (Oroya) is pleased to announce a renounceable rights issue (Rights Issue) to raise approximately $1.56 million before costs. The Rights Issue offers 2 new shares with 1 free attaching option for every 3 shares held at an application price of 1.6 cents per share. The free attaching options have an exercise price of 4.5 cents each and expire on 31 July 2009. The Company will apply for the quotation of new shares and options on ASX.
The Rights Issue is fully underwritten by Patersons Securities Limited and Oroya has incorporated a top-up facility whereby eligible shareholders may apply for additional shares and the free attaching options in excess of their entitlement at the issue price.
Additional shares and free attaching options will only be available to the extent that other eligible shareholders do not take up their entitlements.
The funds raised will be used to explore the Company's mineral interests in Western Australia, Victoria and New South Wales and for working capital.
The Prospectus relating to this Rights Issue is expected to be lodged with ASIC and ASX on Monday 10 July 2006 and will be available after lodgement on the ASX website www.asx.com.au for inspection. A copy of the Prospectus will also be available on the Company's website www.oroya.com.au.
