Seeking funds to develop its Don Mario gold-copper deposit in eastern Bolivia,
Shareholders would receive one right for each share currently held. Exercising four rights would enable the holder to buy one share for 20 cents. If all the rights are exercised, the move could generate up to $2.3 million in proceeds.
A feasibility study of the so-called lower mineralized zone suggests that a gold price of US$300 per oz. would provide an internal rate-of-return estimated at 27%. A gold price of US$221 per oz. would be required for the operation to break even.
Based on proven and probable reserves of 465,800 oz. in the zone, the company expects the mine to produce up to 100,000 oz. per year, over its 4-to-5 year life. Underground mining would target 667,000 tonnes grading 17.63 grams gold per tonne, equivalent to 377,800 oz., whereas 329,700 tonnes grading 8.3 grams per tonne, equivalent to 88,000 contained ounces, would be mined from a mini-pit.
Meanwhile, the company is attempting to define the upper mineralized zone, which has an inferred resource of 4.4 million tonnes averaging 1.9 grams per tonne gold and 1.7% copper, plus 50 grams silver.
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