Resolute Mining Limited advised that it has subscribed for approximately 32.4 million new shares in Orca Gold Inc through a share placement priced at C$0.675 per share. A subscription agreement between Resolute and Orca outlines an investment by Resolute of approximately A$22.5 million for a 15% interest in the fully diluted capital of Orca.
Orca is a Canadian public company engaged in the acquisition, exploration, and development of mineral properties in North and West Africa. Orca’s principal asset is a 70% ownership interest in the Block 14 Gold Project (Block 14) located in northern Sudan (near the border with Egypt). Block 14 Gold represents one of the leading gold development projects in Africa. Orca has defined a Mineral Resource of approximately 3.8 million ounces (Moz) of gold (Indicated Resource of 72.7 million tonnes (Mt) @ 1.3 grams per tonne (g/t) of gold) for 3.05Moz and an Inferred Resource of 19.8 Mt @ 1.2 g/t Au, for 0.75 Moz) and is currently completing a feasibility study on a development expected to deliver annual production of more than 200,000oz of gold. Orca is also conducting active exploration of a strategic portfolio of highly prospective gold properties in Côte d’Ivoire.
Managing Director and Chief Executive Officer, Mr. John Welborn, indicated the investment in Orca was opportunistic and part of Resolute’s ambitious growth strategy: “Orca is a first mover in a region which is host to the largest gold rush seen in Africa in centuries. Sudan’s increasing political stability and highly prospective under explored geology has seen the country rapidly emerge as the second largest producer of gold in Africa. Current annual production from Sudan of more than 3 million ounces of gold is sourced from small scale and artisanal mining activity. Similar to Resolute’s entry into Ghana and Tanzania in the late 1990’s, we are convinced this region of Africa will soon host new modern gold mines.
“Resolute has established an initial strategic interest in Orca and we look forward to working with their well credentialed management team with the aim of collaborating to unlock value. We believe the combination of our mutual exploration and development expertise and resources will materially advance the existing asset position and advance regional exploration and development opportunities. Ultimately our ambition is to participate in the development of a major new gold mining district consistent with Resolute’s Golden Pride legacy as a successful pioneer of the gold mining industry in East Africa”.
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