Ora Gold (ASX:OAU) launches $3m capital raising

• Ora Gold (OAU) taps investors for $2 million via a placement to accelerate work at its Crown Prince gold prospect in Western Australia
• The company received firm commitments for the placement, which will see 500 million new shares issued at 0.4 cents each
• In addition to the placement, the company is offering eligible shareholders to subscribe for up to $30,000 worth of shares at the same price as the placement to raise a further $1 million
• Following the completion of the capital raising, the company will have a cash balance of approximately $3.95 million
• Ora Gold is down 16.7 per cent, trading at 0.5 cents at 12:49 pm AEST

Ora Gold (OAU) has tapped investors for $2 million via a placement to accelerate work at its Crown Prince gold prospect in Western Australia.

The company received firm commitments for the placement, which will see 500 million new shares issued at 0.4 cents each.

In addition to the placement, the company is offering eligible shareholders the opportunity to subscribe for a further $30,000 worth of shares, also at 0.4 cents apiece to raise a further $1 million.

All funds, in conjunction with existing cash results, will be used to further drilling and evaluation work at the company’s Crown Prince prospect, with remaining funds to go towards supporting “value-creating initiatives.”

“Following recent exceptional exploration results from both shallow reverse circulation (RC)  drilling and deeper diamond drilling at the SEB zone of the Crown Prince prospect the likely strong economic potential of the project is starting to be appreciated,” Ora Gold CEO Alex Passmore said.

“The capital raising positions the company strongly and sets us up for a very busy and positive second half of 2023.”

The new share purchase plan will open on July 14, 2023.

Following the completion of the raising, the company will have a cash balance of approximately $3.95 million.    

OAU was down 16.7 per cent, trading at 0.5 cents at 12:49 pm AEST.