Last checked at 2 Mar 2020 07:00
Oriole Resources PLC
('Oriole' or 'the Company')
Private Placement to Raise £245,000andTotal Voting Rights
Oriole Resources PLC, the AIM-quoted exploration company focussed on West Africa, is pleased to announce that it has successfully raised £245,000 before expenses (the 'Proceeds'), through a private placement (the 'Placing').
The Proceeds, together with the recently announced proceeds from the sale of shares in Tembo Gold Corp. ('Tembo'), will primarily be used to support ongoing exploration at the Company's Bibemi project in Cameroon, moving the programme towards drill mobilisation later this year. It will also provide the Company with general working capital, whilst management continues to deliver on its asset realisation programme as previously referenced in announcements dated 14 November 2019 and 25 February 2020.
Oriole Resources CEO, Tim Livesey, said: "In January 2020 we confirmed the extension of gold mineralisation at the Bakassi zone at Bibemi to over 5.0 kilometres with focused rock-chip sampling returning up to 35.86 grammes per tonne gold. The recent results have validated our exploration model and evidence of sub-horizontal 'stacked' veins have highlighted the potential for enhanced volumes of near-surface gold towards the northern end of the trend.
"We are delighted with the support shown for the Company by the incoming investors for this limited private placement in such difficult market conditions and it is a testament to the hard work of the management team and quality of the assets that the placing has been agreed at this price and not at a discount.
"The funds, collectively, from the Placing and the sale of shares in Tembo will be used to further develop our understanding of the structural setting through continued exploration of the northern Bakassi zone. This will allow us to identify further targets for our drill campaign, which we expect to commence later in the year. We look forward to keeping the market updated on our exploration progress."
Further Details on the Placing
The Company will raise £245,000 before expenses through a placing of 70,000,000 new Ordinary Shares ('Placing Shares') at a price of 0.35 pence per share (the 'Placing Price') and 35,000,000 warrants for new Ordinary Shares ('Warrants'), exercisable at a price of 0.60 pence per ordinary share. The Placing Price represents a premium to the price of the Company's Ordinary Shares at close of market on 28 February 2020. The Company has existing shareholder authorities to issue and allot the Placing Shares on a non-pre-emptive basis. The Warrants, which will be exercisable at any time in the two years after issue, are contingent upon shareholder approval for their issue being granted at the Company's next Annual General Meeting, provisionally scheduled for mid-May 2020. The issue of the Placing Shares is not conditional on approval of the Warrants.
Application will be made for 70,000,000 new Ordinary Shares to be admitted to trading on AIM ('Admission') which is expected to occur on or around 8am on 12 March 2020. Following Admission, the total number of Oriole Ordinary Shares in issue will be 771,801,276 with voting rights. This figure of 771,801,276 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Following the publication of this announcement, this inside information is now considered to be in the public domain.
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For further information please visit www.orioleresources.com, @OrioleResources on Twitter,
or contact:
Oriole Resources PLC Tim Livesey / Bob Smeeton / Claire Bay
| Tel: +44 (0)20 7830 9650 |
Blytheweigh (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks
| Tel: +44 (0)20 7138 3204 |
Grant Thornton UK LLP Samantha Harrison / Niall McDonald
| Tel: +44 (0)20 7383 5100 |
WH Ireland Adrian Hadden / Darshan Patel / Lydia Zychowska
| Tel: +44 (0)20 7220 1666 |
Notes to Editors:
Oriole Resources PLC is an AIM-quoted exploration company, operating West Africa. It is focused on early-stage exploration in Cameroon (Bibemi and Wapouzé projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. Year 1 commitments have been met at all three projects. The Company has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions.