Orinoco Gold Moves Closer to Receiving Cascavel Funding

Orinoco Gold Ltd. (ASX:OGX) announced that Chancery Asset Management, a Singapore-based private mining investment company, has completed its due diligence on Orinoco’s 70-percent-owned Cascavel gold project in Brazil. The way is now cleared for Orinoco to receive US$8 million in funding for the project.

Key points from the release include:

• This satisfies the key Condition Precedent to the innovative gold sharing arrangement of US dollar 8m to underpin the development of Cascavel
• Funds will be available for drawdown under this facility by the end of April, enabling Orinoco to commence mine development at Cascavel at this point
• Ordering of equipment for the Plant to commence in May, for commissioning of Plant in November 2015
• Orinoco will shortly release a prospectus and timetable for its previously announced 1 for 4 non renounceable Entitlment issue at 7c plus a free attaching option, which will complete its AU dollar 14m funding package for Cascavel.

Thomas Puppendahl, managing director at Chancery, commented:

Our due diligence team has concluded that Orinoco’s Cascavel gold project is one of the best undeveloped high grade Projects in the market — and when combined with Orinoco’s strong management team, we have every confidence that our production assumptions will be met in the near term. We are fortunate to have secured a quality asset such as Cascavel for the first stream within Chancery Asset Management an we look forward to growing our portfolio with this type of high quality project.

Click here to read the full Orinoco Gold Ltd. (ASX:OGX) press release.