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Ortac (LON:OTC) shares were on the rise Monday morning after the company announced drill results from the Yacob Dewar, Eritrean Copper-Gold project.
AIM-listed Ortac and its partner, Andiamo Exploration, have begun a 1,400 metre drill programme on Yacob Dewar in Eritrea, and the latest drill results include 1.38% copper over 53 metres from the surface and 1.32% over 42.5 metres from surface.
"These initial results are extremely encouraging and support our revised geological interpretation: namely that the copper mineralisation intersected by Andiamo's previous drill programmes continues to the south with excellent grades across broad intersections," said Vassilios Carellas, Ortac's chief executive officer (CEO).
"These initial good results also come at a time when our Šturec gold project in Slovakia is set to enter an important phase that will serve to shape our next stage of its development," the CEO added.
Ortac has now completed payment of the third and final tranche of US$500,000 under the conditional subscription agreement with Andiamo, taking Ortac's stake in its partner up to 25.37%.
On completion of a technical and economic assessment (expected by 30 June 2015), Ortac will have the right to subscribe for a further 10mln shares of Andiamo at US$0.20 per ordinary share that would take its shareholding in Andiamo to more than 40% of the latter's enlarged share capital.
"We look forward to continuing our partnership with Andiamo and to receiving the remaining assay results from this initial drill programme, which our investment in Andiamo has funded and where our strategy to advance both our Eritrean and Slovakian investments serve to help broaden our potential investment returns for shareholders," Carellas said.
"With good initial assay results from Yacob Dewar, and more to come, there is a clear share price driver for OTC in the near term in our view," said broker Cantor Fitzgerald.
Shares in Ortac were up 2.3% at 0.22p in mid-afternoon trading.