Last checked at 1 Jul 2014 07:00
Orogen Gold plc
("Orogen" or the "Company")
Drilling for Equity Agreement
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, has completed an agreement with DEM Geosciences SAL ("DEM"), a Lebanese registered company, for the provision of diamond drilling services to the Company.
Highlights:
· Option for up to 10,000 metres of diamond drilling at a fixed price in 2014 and 2015
· Part payment in equity of approximately 55% of direct drilling consideration
· Ordinary shares of 0.1p to be issued for completed drilling work priced at 0.2p per share (the "Subscription Shares")
· The issue price of 0.2p per share represents a significant premium to the recent share price
· The Subscription Shares will be subject to a 24 month lock-in period
Ed Slowey, Chief Executive of Orogen, commented: "We are very pleased to announce the agreement with DEM that secures access to drilling capabilities and helps maintain cash resources within the Company. We view the agreement, which prices the shares to be issued at a substantial premium to the recent share price, as a vote of confidence by DEM in Orogen over the medium to longer term."
Agreement
The Company has agreed the option to contract up to 10,000 metres of diamond drilling to be completed in 2014 and 2015 at a fixed price.
The Subscription Shares will be issued to DEM in stages at an issue price of 0.2p per share following the completion of contracted drilling milestones. The Subscription Shares represent approximately 55% of the direct consideration of the drilling costs to be paid to DEM.
The total consideration per metre is at a market competitive price and at an overall discount to the cost per metre of the Company's most recent drilling programmes.
About DEM
DEM is an established geotechnical engineering group with extensive core and RC drilling experience in Eurasia and Eastern Europe.
-ENDS-
Enquiries:
Orogen Gold plc | +353 1662 8395 |
Ed Slowey, CEO | |
Alan Mooney, FD | |
WH Ireland Limited (Nominated Adviser and Broker) | +44 (0) 20 7220 1666 |
Tim Feather | |
James Bavister | |
Hume Capital Securities plc (Joint Broker) Jon Belliss
Walbrook (Public Relations and Investor Relations) | +44 (0) 20 3693 1470
+44 (0) 20 7933 8780 |
Paul Cornelius/ Guy McDougall | |
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About Orogen Gold
Orogen Gold plc is a UK public company quoted on the London Stock Exchange AIM market (ticker: ORE). The Company is focused on mineral exploration and development in Europe and is currently operating two gold exploration projects: a) at Mutsk in Armenia and b) at Deli Jovan in Serbia. The Mutsk gold project in Armenia was optioned by Orogen early in 2013 to follow-up reports of a new epithermal discovery within an established gold district. At Deli Jovan the historic high-grade gold mining camp was last in production prior to World War II and has been significantly under-explored in modern times.