leadf
logo-loader
viewOriole Resources PLC

Oriole Resources to raise up to £1.86mln via equity sales

Proceeds are earmarked for drilling at the promising Bibemi gold project in Cameroon

Oriole Resources PLC - Oriole Resources to raise up to £1.86mln via equity sales

Oriole Resources PLC (LON:ORR) has conditionally raised £1.576mln through a placing and share subscription with the new funds earmarked for the support of ongoing exploration activities in Cameroon.

Additionally, Oriole has raised £293,000 funding on the NRPrivateMarket, which is operated by Minexia and is FCA regulated via authorised representative Ragnar Capital. The process was oversubscribed and is now closed to further applications.

The monies will fund a 3,000-metre maiden drill programme at the Bibemi project, for which the drill rig is presently being mobilised. Oriole noted that early-stage work at Bibemi shows potential for new discoveries in multiple zones.

A total of 463.4mln new shares will be issued at a price of 0.34p each, a discount of around 15% from the closing market price on October 6, 2020.

READ: Oriole delighted with significant grades at Hesdaba 

The company noted that the funding supports working capital at a time where it is continuing an asset realisation programme and is also reviewing new early-stage opportunities.

"With early rock chip sampling at Bibemi returning grades up to 135.40 grammes per tonne gold and extensive trenching work having returned encouraging results, including 9 metres grading 3.14 grammes per tonne, the next logical step is to undertake a systematic drilling programme to test the vertical depth extension of the mineralisation,” John McGloin, Oriole chairman said in a statement.

"Early-stage exploration work is frequently discounted by the market from company valuations until drill intersections are available and consequently, we believe this work will help to drive shareholder value.”

Directors participated in the equity raises, taking 7.35mln shares (worth £25,000) which is on top of the share options received by directors in lieu of salary in the four months from November 2019 (in which £120,000 worth of salary was exchanged for share options).

The share issues will be accompanied by warrants, granting investors the opportunity to take additional shares at an exercise price of 0.68p over a 24-month period.

Oriole noted that the equity funding is subject to shareholder approval and a general meeting will be convened on October 27, 2020.

-- Updates with close of NRPrivateMarket applications --

Quick facts: Oriole Resources PLC

Price: 0.4915 GBX

LSE:ORR
Market: LSE
Market Cap: £4.48 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Oriole Resources PLC named herein, including the promotion by the Company of Oriole Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Market report: FTSE falls as northern England prepares for lockdown

FTSE 100 had a lukewarm start as Brexit remains a question mark while trade talks between the UK and the EU are still ongoing. London’s leading index opened 7 points higher at 5,953. Boris Johnson is expected to announce a lockdown on certain areas in northern England as of Monday. Pubs,...

1 week, 6 days ago

2 min read