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Oriole Resources PLC on Wednesday announced a £400,000 financial package to advance its assets in Cameroon, particularly drill target identification at its Central Licence Package project.
The London-based gold exploration company said it conditionally raised £300,000 in a placing and £40,000 in a subscription. It aims to raise a further £60,000 through a salary sacrifice scheme.
The 188.9 million shares will issued at price of 0.18 pence per share, representing a 14% discount to its 30-day average price on Tuesday.
‘The funds raised in this placing will primarily be used to continue the company's grassroot exploration at the CLP Project, towards initial drill target definition in 2023, and to progress the Bibemi technical study that will support a two-year extension in October 2022,’ said Chief Executive Bob Smeeton.
In addition, the company said it intends to enter into a salary sacrifice scheme in which £96,000 of the board's gross salaries will be sacrificed over a four-month period from June.
The intention is that the net sacrificed salary - estimated at £60,000 - will then be used to subscribe for new ordinary shares at the end of each month.
Phase four diamond drilling recently completed at the Bibemi gold project for 531.30 metres to test the potential for horizontal veining that could enhance the mineralised volume near-surface.
Oriole said samples from Bibemi will now be prepared for analysis and the results will be built into the firm's 3D model. It is hoped that this will enable the definition of a JORC compliant exploration target at Bibemi later this year, the company added.
Shares in Oriole were down 13% at 0.19 pence on Wednesday morning in London.
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