- Origin Gold (OIC) is looking to raise up to C$5 million to fund its acquisition of the Otú Project in Antioquia, northwest Colombia
- The company intends to issue 25 million units at a price of $0.20 each, consisting of one common share and one-half of a share purchase warrant
- Each warrant will be exercisable at a price of $0.30 per share for a period of 24 months from the date of issuance
- A definitive agreement for the acquisition of the Otú Project was signed on October 28 last year before being amended on November 30
- Origin Gold is currently steady at $0.21 per share
Origin Gold (OIC) is looking to raise up to C$5 million to fund its acquisition of the Otú Project in Antioquia, northwest Colombia.
Under the terms of the offering, the Toronto-based company intends to issue 25 million units at a price of $0.20 each. These units will be comprised of one common share in Origin Gold and one-half of a common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional share at a price of $0.30, exercisable over a period of 24 months from the date of issuance.
Origin Gold said it will use the proceeds to satisfy the payment obligations related to the acquisition of the Otú Project. An agreement was signed on October 28 last year, but was amended on November 30 before receiving TSX Venture Exchange approval on December 11.
“Now that we have shareholder approval of the transaction, we’re looking forward to bringing qualified investors an opportunity to participate in the Otú Project through an investment in the company,” said Jaime Lalinde, CEO of Origin Gold.
“Following completion of the private placement, we’ll turn our focus to the planned exploration campaigns: drilling in the prospective brownfields and conducting geophysical surveys of the uncharted, potentially attractive greenfields,” he added.
According to the amended agreement, Origin Gold will issue approximately 57.7 million common shares to the vendors of the Otú Project at a minimum price of $0.18 each.
Located in the in the Amalfi, Segovia and Zaragoza regions of Antioquia, the 24,255-hectare project consists of interests in 26 mining claim titles and applications.
Origin Gold is currently steady at $0.21 per share as of 9:50am EST.