Oriole Resources PLC (AIM:ORR) rose 8% on Tuesday morning as it announced a potential US$1mln investment into its new sub-holding company NewCo.
NewCo has been created to manage Oriole's five Eastern Central Licence Package (CLP) gold licences in Cameroon, with the funding expected to be secured in the second quarter of this year from a Canadian investment bank.
The bank would gain a 10% interest in NewCo, Oriole said, with the investment earmarked “for gold exploration, funding the company's proposed work programme” and enabling it “to pursue other funding opportunities”.
Oriole also said it expects its ownership of the licenses will grow from 90% to 100% in the future.
Shares rose 8% to 0.14p.