Oversubscribed deal to advance company properties to pre-feasibility
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Jan. 21 - Oro Mining Ltd. said it settled an oversubscribed private placement of units. The deal priced for C$10 million on Dec. 10 and was amended on Jan. 11. The offering was increased to C$12 million on Jan. 18 and raised C$12.25 million.
Oro sold 35,009,571 units at C$0.35 per unit. The units, originally priced at C$0.40 apiece, consist of one common share and one half-share warrant and were sold on a reasonable-efforts basis. The whole warrants are exercisable at C$0.50 for two years.
The strike price represents a 35.14% premium to the Dec. 9 closing share price of C$0.37.
Casimir Capital LP was the lead agent for the deal, and Raymond James Ltd. also assisted.
"It was oversubscribed and then it was oversubscribed on the oversubscription," John Brownlie, chief executive officer, told Prospect News. "Even at the last minute, people were trying to get in.
"We could have easily raised C$20 million," he added.
But Brownlie said Oro Mining has no current plans to take advantage of the investor interest to raise more funds.
"We're well funded," he said.
As the company moves forward on its drilling and exploration program, Brownlie hopes to "get some traction in the stock price."
"I don't want to raise more money at these prices," he said. "Because I raised more money than I originally intended, that gives us some walking-around room to find deals that could be accretive," he said, mentioning a joint venture or other such transactions.
Proceeds will be used to advance the Trinidad and El Compas properties toward pre-feasibility study level and for working capital and general corporate purposes.
The Vancouver, B.C., company is focused on expanding its gold resource base, moving toward production at its advanced projects and continuing to make exploration discoveries.
| Issuer: | Oro Mining Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$12,253,350
|
| Units: | 35,009,571
|
| Price: | C$0.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.50
|
| Agents: | Casimir Capital LP (lead), Raymond James Ltd.
|
| Pricing date: | Dec. 10
|
| Revised: | Jan. 11
|
| Upsized: | Jan. 18
|
| Settlement date: | Jan. 21
|
| Stock symbol: | TSX Venture: OGR
|
| Stock price: | C$0.37 at close Dec. 10
|
| Market capitalization: | C$31.3 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
