Australia's Oropa raises fund to finance N. Sumatra drilling program
Wednesday, May 14 2003 - 03:51 AM WIB
Oropa said the fund raised would be used to finance drilling program at Pungkut gold project in North Sumatra.
Oropa said the initial drilling program will comprise approximately 1300 meters of diamond drilling and will test the Sihayo 1 North previous owner has already outlined a 300,000 oz Au inferred resource and Sihayo 1 South (Sambung) some 2km to the south where extended surface mineralisation has been outlined over a distance of approximately 1.3km, including a continuous channel sample of 36m @ 3.56 g pt Au.
?Following the release of the results of the initial drilling program to the ASX and subject to Oropa and MBL reaching agreement on a follow up drilling program and associated test work, Oropa has agreed to then offer MBL 20 million ordinary fully paid shares in Oropa on a first right of refusal basis at a placement price to be set at the 10-day volume weighted average ASX market price (preceding the acceptance of the placement by MBL) with an upper cap of 3 cents per share to raise up to $600,000,? Oropa said in a statement.
Additionally, Oropa has agreed to give MBL a first right of refusal to underwrite a subsequent pro-rata issue up to a value of $3 million for working capital and further funding of the Pungkut gold project. MBL may source suitable sub-underwriters, which are to be acceptable to Oropa. Both placements and any portion of a rights issue taken up by MBL are to be free of any fees or commissions.
Oropa acquired 75 percent interest in Pungkut gold project late last year. State miner PT. Aneka tambang Tbk. holds the balance. Some 70 km north of Pungkut is Newmont's large Martabe gold project, located on the west coast of North Sumatera and which currently hosts an inferred gold resource of approximately 2.2 million ounces, (alex)