Completion of Earn-in Phase of Nyanzaga Project and Execution of Conditional Heads of Agreement to acquire 100% of the Project: Orecorp Ltd.’s (ASX: ORR) stock skyrocketed 54.12% on July 20, 2018 to A$0.262 (3:30 PM AEST) after the company’s Tanzanian subsidiary, OreCorp Tanzania Limited, completed its earn-in obligations of the Nyanzaga Gold Project in Tanzania. This is as per the Earn-in Agreement entered into by the Company and Acacia Mining plc, on 22nd September 2015. The Project is owned by Nyanzaga Mining Company Limited (NMCL), which is currently a wholly owned subsidiary of Acacia. ORR has fulfilled its earn-in obligations by investing approximately US$14 million for the completion of a Pre-Feasibility Study and additional feasibility study related work. Moreover, ORR has exercised its option to acquire an additional 26% interest in the Project, for the consideration of US$3 million to Acacia , which would increase ORR’s interest in NMCL from 25% to 51%. The acquisition of shares by ORR represents a 51% interest in NMCL that is based on condition to get an approval from the Tanzanian Fair Competition Commission (FCC) and newly established Mining Commission. The company has already lodged relevant applications with the FCC and Mining Commission. Additionally, ORR has also signed a binding conditional heads of agreement with Acacia and NMCL to allow ORR to get 100% ownership of Nyanzaga, by investing US$7 million further. The acquisition of the additional 49% of shares in NMCL is also on fulfilling the conditions. Meanwhile, ORR stock has fallen 17.07% in three months as on July 19, 2018.
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