WESTGOLD FORMS STRATEGIC ALLIANCE WITH ORA

$6M Placement to Accelerate Crown Prince Development

Ora Gold Limited (ASX: OAU) has entered into a binding agreement with Australian gold producer Westgold Resources Limited (WGX, OTCQX: WGXRF) for a strategic alliance and $6.0 million placement. The alliance aims to advance Ora’s Crown Prince deposit into production and expand exploration efforts.

Highlights of the agreement include:

  • Strategic Placement: $6.0 million at $0.0045 per share, equating to a 15.0% pro forma shareholding in Ora.
  • Ore Purchase Agreement: Westgold and Ora to agree on terms for purchasing ore from Crown Prince, which hosts a Mineral Resource of 240koz at 4.1g/t Au.
  • Board Representation: Westgold to gain a board seat and equity participation right.
  • Financial Strengthening: Ora’s pro forma balance sheet to show approximately $8 million in cash and nil debt, supporting accelerated development and exploration.

Ora’s CEO, Alex Passmore, commented:

We are very pleased to announce the Westgold Strategic Alliance and Placement, which provides a short and tangible pathway to production and cash flow from Crown Prince. Ora and Westgold will work collaboratively over the next few months to define the development timetable. This alliance with a large regional operator with extensive processing infrastructure gives us strong confidence in the potential for future economic extraction of other advanced projects within our tenure.

An updated Mineral Resource Estimate at Crown Prince is expected by September, with project development and mining proposals already underway.

Read the full announcement

Goldman

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