The Uruguay-based junior raised C$4mln (24.1c or 14.7p) through an oversubscribed placing, while warrants exercisable at 20.4p before 2020 may bring in a further £1.7mln.
More importantly, says Cantor, the money has been earmarked for exploration of the Anza licence, near Medellin in Colombia, which will allow cash generated from the producing San Gregorio in Uruguay to be utilised to its mine life.
Anza covers an area of 100 sq km and has valid mining and environmental permits with two small gypsum projects on the licence already.
The prospect also lies on the Mid-Cauca gold belt, an area that has already seen a number of discoveries including one 10m oz project just 50km away.
Funds from the placing will pay for a 15,000m resource definition programme at Anza. Drilling by previous owner indicated intercepts 40.5m at 14.1g/t and 14m at 40 g/t from depths of around 175m, while metallurgical work indicated recoveries art 96%, all impressive numbers.
Orosur’s initial exploration target is 200,000oz of gold at the APTA target, but Cantor says that with mineralisation open to the north, south and down dip, a much larger resource ‘must be possible’ over time.
At San Gregorio ...
At San Gregorio, work is currently being undertaken by consultant SRK on a scoping study to expand the central, east and Deeps sections, another underground target Veta A and some surface targets.
More step-up drilling can also be carried on the 100km Cristalina greenstone belt that extends to the east and west of San Gregorio.
Production from the existing operations at San Gregorio meanwhile is estimated at 30-35,000oz this year at a cash cost of US$800-900 and US$1,025 including sustainable capital expenditure.
The broker’s target price is 38p, trimmed to shares issued in the placing, while the sum-of-the-parts valuation is 25p.
Shares were trading at15.3p.