OreCorp out to market for $56m raising to chase Tanzanian gold

Australia’s resources juniors are having one of their richest patches on the capital markets, with the sector raising $2.37bn in the March quarter.

The rush of significant raisings by resources hopefuls is showing no signs of slowing, with Africa-focused OreCorp tapping the market for $56m to finalise feasibility studies on its Tanzanian gold project.

OreCorp will raise the cash at 80c a share, with the raising led by Euroz Hartleys and Argonaut Securities, at about a 15 per cent discount to its last closing price of 94.5c.

The company has said it expects to finalise the definitive feasibility study on its Nyanzaga project in Tanzania in 2022, with the deposit currently carrying a total resource inventory of just over 3 million ounces of gold at an average grade of 4.03 grams a tonne.

OreCorp, chaired by Equinox Minerals founder Craig Williams, will issue 70 million new shares as part of the equity issue, expanding its share base by 21.8 per cent, with bids into the raising due by close of business on Wednesday.

The company’s raising comes as Australia’s resources juniors go through one of their richest patches on the capital markets, with the sector raising a massive $2.37bn in the March quarter, according to recent data released by accounting firm BDO.