LONDON (Alliance News) - Orogen Gold PLC Wednesday said it has raised GBP1.1 million after conditionally placing 1.02 billion new shares with existing and new investors, as it looks to advance the exploration programme at its Mutsk gold project in Armenia.
The AIM-listed gold explorer said the shares were conditionally placed at 0.11 pence each and represented about 30% of its enlarged share capital.
The news comes after Orogen Gold earlier this week said a new phase of drilling at its Mutsk project confirmed discovery of wide zones of gold mineralisation.
"It is clear at this stage that the project warrants a further drilling programme both to explore the limits of the mineralisation and to undertake infill drilling that can define a maiden resource. This new funding can help bring us towards this goal and we will work actively towards these twin aims over the coming weeks and months," Chief Executive Ed Slowey said in a statement.
Orogen has an exclusive agreement with joint-venture partner, Georaid CJSC, to earn an 80% interest in the Mutsk project by spending a total of USD2.5 million by the end of August 2016.
The company said it expects dealings in the placing shares to begin on or around September 16.
The shares were placed through Hume Capital Securities PLC.
Orogen Gold shares were Wednesday quoted down 26% at 0.115p, one of the biggest decliners on the AIM All-Share index.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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