To be honest I was really worried myself with the heavy selling down in the last few days. Brought back bad memories.
Read on below though...
Heavyweight international miner AngloGold Ashanti will up its stake in Brazil-focused junior Orinoco after it agreed to sub-underwrite a chunk of Orinoco’s $5 million entitlement issue.
According to a term sheet obtained by The Australian, AngloGold — which already holds a 17 per cent stake in Orinoco under a deal agreed by the pair earlier this year — will sub-underwrite $1m of the raising and lift its stake to 18.1 per cent.
The entitlement issue, which is being managed and underwritten by Perth firm Somers and Partners, is seeking to raise the cash at an issue price of 2c per share.
As part of the fundraising, AngloGold has also agreed to hand over $3 million to Orinoco today as a prepayment against its earlier agreement to spend $US9.5m over three years to earn a 70 per cent stake in Orinoco’s Faina goldfields project.
Cheers Crazy but happy Ron
OGX Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
