OreCorp (ASX:ORR) to raise $13.56M for Hobbes and Nyanzaga projects

• Western Australian based mineral company OreCorp (ORR) will raise $13.56 million for work at its Hobbes and Nyanzaga projects
• Under the placement, OreCorp will issue 45.2 million shares to institutional and sophisticated investors for 30 cents per share
• The funds will, in part, be used for the continued definitive feasibility and relocation action plan studies at Nyanzaga in Tanzania
• The company will also put some of the placement proceeds towards commencing pre-development activities at the gold project
• Additionally, OreCorp says the funds will ensure it is in a strong position to make the final payment for the acquisition of Nyanzaga
• In Western Australia, OreCorp will spend some of the funds on the expansion of the Hobbes Project, including infill drilling at the Hobbes Prospect
• Company shares are trading 1.5 per cent higher for 34.5 cents each

Western Australian based mineral company OreCorp (ORR) will raise $13.56 million for work at its Hobbes and Nyanzaga projects.

Under the placement, OreCorp will issue 45.2 million shares to institutional and sophisticated investors, both in Australia and abroad, for 30 cents per share.

This issue price represents a discount of 8.8 per cent on the 15-day volume-weighted average price (VWAP) and a 5.6 per cent discount on the 30-day VWAP.

The first tranche comprises of 45 million shares and will be allotted on May 26, whereas the second tranche of 200,000 shares was subscribed to by OreCorp Chairman Craig Williams and will require shareholder approval.

Following the completion of the placement, OreCorp will have a cash balance of approximately $26 million.

The funds will, in part, be put towards continuing the definitive feasibility and relocation action plan studies at Nyanzaga in Tanzania, as well as commencing pre-development activities at the gold project.

Additionally, OreCorp says the funds will ensure it is in a strong position to make the final payment for the acquisition of Nyanzaga, following receipt of a special mining licence from the Tanzanian regulatory authority.

In Western Australia, OreCorp will spend some of the placement proceeds on the expansion of the Hobbes Project and infill drilling at the Hobbes Prospect.

Meanwhile, OreCorp has said that its Perth office is now fully operational and that a team of geologists is heading out to the Hobbes Project to commence field programs.

Company shares are trading 1.5 per cent higher for 34.5 cents each at 2:10 pm AEST.