Re-emerging gold miner Orinoco Gold is seeking to raise as much as $15 million via a placement.
The offer price is 12¢ per share - with a free option on a 1-for-2 basis exercisable at 18¢, expiring March 31 2020. The issue price represents a discount of 4 per cent to the last close and a premium of 4.5 per cent to the 10-day volume weighted average price, according to terms sent to fund managers on Monday morning.
The company is managing the raise internally.
Funds raised will be used to ramp up production at Cascavel to 5,000 ounces per month by year end, and to begin a $3 million drilling programme at Sertao, Tinterio, Eliseo and Cascavel.
Orinoco's major shareholder is South Africa's AngloGold Ashanti with a 14.65 per cent stake.
