Orvana nets $3.4 M, eyes offshore bets

Proceeds of recent private placements will be used by Orvana Minerals (TSE) to fund exploration on projects outside Canada.

The junior will raise $3.38 million from one placement to a mutual fund and a further $388,000 from the sale of shares to one or two private investors. Orvana plans to use a portion of the funds to explore further the Highlands mine gold project in Montana. Plans call for an adit to be re-opened on the 600 level to establish stations for underground drilling to test the extension of a mineralized zone.

More exploration is planned this summer on the Central Inlier property in Jamaica. A second-phase program will include evaluation (and possibly engineering studies) on the high-grade Bennett gold zone and testing of a large gold anomaly.

Orvana intends to use some of the proceeds to fund precious metals or gold-copper targets in South America. The company will fund its 28% of exploration costs, with Noranda Exploration, on properties acquired by the Copperline Syndicate. The junior is also involved in the Altiplano joint venture with Emusa in Bolivia and will fund its 14% of exploration costs on these projects.