29/08/2012 - 14:39

Strickland to focus on Brazil after acquisition

29/08/2012 - 14:39

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Strickland to focus on Brazil after acquisition

Perth-based gold play Strickland Resources is repositioning itself as a Brazil-focused exploration company, after announcing the acquisition of Orinoco Resources and launching a $2.7 million capital raising.

Strickland announced today it had entered a binding agreement to acquire Orinoco, which is a newly established company which holds three gold projects in Brazil, including the highly-prospective Curral de Pedra deposit, which is located near Troy Resources’ Sertao gold operation.

The company offered 19 million Strickland shares for all of the issued capital in Orinoco, valuing the target at $3.23 million, based on today’s Strickland share price of 17 cents.

Orinoco will also receive 10 million options to purchase Strickland shares, exercisable at 25 cents each.

Following completion of the acquisition, Strickland will launch a comprehensive exploration campaign focused initially on Curral de Pedra.

Also today, Strickland said it planned to raise $2.7 million through a share placement to fund the drilling programme.

The raising will include a one-for-three entitlements issue, priced at 15 cents per share to raise up to $1.2 million, and a private placement to raise up to $1.5 million, also priced at 15 cents each.

Trafford Resources will underwrite the placement and subscribe for $1 million in shares.

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