en.Wedoany.com Reported - Ongwe Minerals (TSX-V:OGW) has announced the launch of a C$10 million (approximately US$10.16 million) equity financing plan, with the proceeds primarily aimed at advancing the company's gold project exploration in Namibia.
The company has entered into an agreement with Beacon Securities (acting as sole bookrunner) and Research Capital (acting as co-lead agent) to issue 7.25 million common shares at a price of C$1.38 per share through a Listed Issuer Financing Exemption (LIFE) offering.
Under the agreement, the agents have the option to purchase up to an additional 1.09 million shares at the same price, securing up to C$1.5 million in additional total financing.
In addition, Ongwe will concurrently complete a non-brokered private placement, also at C$1.38 per share, issuing up to 2.17 million shares, expected to raise approximately C$3 million in additional funds.
The proceeds from this financing will be primarily allocated to exploration activities on the company's assets in Namibia, while also being used for working capital and general corporate purposes.
The two offerings are expected to close around June 25, subject to regulatory approvals, including conditional acceptance from the TSX Venture Exchange (TSX-V).
Ongwe will pay the agents a cash fee equivalent to 6% of the total financing amount and issue compensation options equal to 6% of the number of shares issued. The exercise price of the compensation options is C$1.38 per share, with a term of 24 months.
Ongwe's core assets include the Omatjete and Khorixas gold projects located in the Northwest Damara gold belt in northwestern Namibia.
The Omatjete project is situated along the regional Okondeka Fault Zone, which also hosts the Kokoseb gold deposit. Early surface work in the area identified the Manga Gold Prospect, with a soil gold anomaly extending 4.5 km by 1 km, and initial drilling results indicate gold-bearing bedrock.
The Khorixas gold project, located 60 km west of Osino Resources' Eureka gold project, features two large surface discoveries, Belmont and K17. The Belmont prospect alone has a surface gold mineralization extent of approximately 12 km by 6 km.
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