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Orosur Mining gets warm response to Colombia exploration plans

A placing at 14.7p was oversubscribed and the money means work can start at Anza (in Colombia)
picture of gold and dollars
Placing saw strong demand

Orosur Mining Inc. (LON:OMI) has seen strong demand for a funding to cover a drilling campaign on its acreage in Colombia.

A C$4mln (£2.44mln) placing at 24.1c (14.7p) was oversubscribed and the money means work can start at Anza (in Colombia) without having to divert funds from the producing San Gregorio mine in Uruguay.

San Gregorio is expected to produce between 30,000 - 35,000 ounces of gold at operating costs of US$800 - US$900 per ounce.

WATCH: Orosur Mining funds new grabs for gold in Colombia

With gold at US$1,290 currently, production at this level will allow expansion of the resource base in Uruguay, both underground and at the surface operations,  utilising the processing plant's spare capacity.

In Colombia, a 15,000-30,000 campaign drilling will start this year with the aim of producing a Canadian-standard maiden resource for Anzá.

Ignacio Salazar, Orosur’s chief executive, said: “The completion of this financing, which was oversubscribed and at a premium to the prevailing market when negotiated, is a testament to the quality of our assets and growth prospects.

“We are delighted to have two new institutional shareholders join our shareholder base while limiting dilution to our existing shareholders.

“The funds raised should allow the company to swiftly commence resource definition drilling in our high potential Anzá gold project in the Mid Cauca belt of Colombia.

“Concurrently, cash flow from existing operations in Uruguay can be directed to growing our production profile within the 100 km long greenstone belt we control in Uruguay, as well as around our existing operating mine and CIL plant.” 

Shares eased 7% to 15.01p.

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