en.Wedoany.com Reported - Namibia-focused Ongwe Minerals (TSX-V:ONG) has raised aggregate gross proceeds of approximately C$23 million (US$23.3 million) through a brokered private placement and a concurrent non-brokered placement.
The company issued 13,334,000 common shares at C$1.38 per share under the listed issuer financing exemption, generating gross proceeds of C$18.4 million. Beacon Securities acted as lead underwriter, with a syndicate including Research Capital, Haywood Securities, Raymond James, Canaccord Genuity, Red Cloud Securities, and Stifel Nicolaus Canada. Agents fully exercised their option for an additional 2,174,000 shares. The concurrent private placement issued 3,333,333 shares at the same price, adding C$4.6 million, arranged by Cirrus Capital for institutional and retail investors outside Canada.
CEO Dave Underwood stated, "A significant number of existing shareholders chose to participate again, and we also attracted high-quality specialist and generalist institutions, family offices, and individuals to our register." The company upsized the offering after receiving strong demand. The recent dual listing on the Namibian Stock Exchange enabled a sizable allocation to Namibian investors.
Agents received a 6% cash commission on the gross proceeds from the LIFE offering, with reduced commissions on certain sales. The company issued 555,682 broker warrants exercisable at C$1.38 per share for 24 months. Cirrus received a 3% finder's fee on the private placement proceeds.
Funds will be used to expand Ongwe's exploration of gold projects in Namibia. Reverse circulation drilling has commenced at Khorixas, with diamond drilling at Omatjete scheduled to start in late July to test the Manga and Nguni targets. The projects are located in Namibia's Damara gold belt, with the Omatjete project along the Okondeka fault zone, which hosts WIA Gold's (ASX:WIA) Kokoseb deposit. Early work at Omatjete identified the Manga prospect, with a soil gold anomaly measuring 4.5 km by 1 km, and scout drilling has confirmed gold in bedrock. The Khorixas project, located 60 km west of Osino Resources' Eureka project, hosts the Belmont and K17 discoveries, with Belmont's surface gold footprint approximately 12 km by 6 km.
Ongwe Minerals' management team includes individuals who worked at Osino Resources (acquired by Shanjin International (SHE:000975) for C$368 million) and those who advanced the Otjikoto deposit at Auryx Gold (TSX:AYX) (acquired by B2Gold (TSX:BTO) for US$180 million).
