Orion commences drilling in South Africa, announces capital raising

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Historical photograph of Prieska Copper Mine Image credit: Orion Gold ASX release

Orion Gold announced that drilling has commenced at the Marydale Gold project, a virgin gold discovery where historical drilling returned outstanding thick intercepts such as 50.4 m at 2.68 g/t gold.

Historical photograph of Prieska Copper Mine Image credit: Orion Gold ASX release
Historical photograph of Prieska Copper Mine
Image credit: Orion Gold ASX release

The company also announced the commencement of drilling at the historical Prieska Copper Mine Zinc-Copper Project to in-fill historical drilling and test for extensions to the mineralisation.

In addition to the commencement of drilling at the two mines – both located within the Areachap Belt in South Africa – the company announced that it has received commitments from investors to raise $0.3 million by way of placement of 20 million fully paid ordinary shares at $0,015 per share.

“The placement has been made to sophisticated investors, pursuant to Section 708A of the Corporations Act 2001. The issue of these Shares falls within the 15% capacity for issues of equity securities without shareholder approval afforded by ASX Listing Rule 7.1,” Orion told the Australian Securities Exchange on Tuesday.

“The placement follows the Company’s announcement on 3 May 2016 that under the terms of the agreement for the sale of the Company’s Eastern Goldfields project, it had issued 33.3 million Shares to Eastern Goldfields Limited to raise $0.5 million.”

According to Orion, the proceeds will be used to progress drilling and exploration work as part of due diligence being undertaken on the Areachap project, to progress exploration work at Connors Arc in Queensland and for working capital purpose.