From the Australian ... quote... eavyweight international miner...

From the Australian ... quote...
eavyweight 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.
The proceeds of the issue will allow Orinoco to complete its acquisition of the remaining 30 per cent in its Cascavel gold mine in Brazil and fund ongoing mine development at the project.
The new funding will take Orinoco’s total cash position to around $11.7m.
The 2c per share raising price represents a steep 60 per cent discount to both its last trading price and its 10-day volume-weighted average price.
Orinoco (OGX) is looking to rebuild confidence in the market after a tough 12 months for the company. Its shares were trading as high as 29c each late last year but fell sharply after it was forced to suspend operations at Cascavel due to insufficient working capital.