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.
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.