Taking advantage of strong gold markets, Orvana Minerals (TSE) plans to raise $16.6 million to finance its purchase of the Don Mario project in Bolivia.
The company will issue 3.3 million special warrants at $5 each for gross proceeds of $16.6 million. Each warrant will convert, at no additional cost, into one common share.
The balance of the funds will be applied to development work at Don Mario, which contains two known deposits.
A high-grade zone, hosted in a steeply dipping, garnet-magnetite quartz unit, contains about 1 million tonnes grading 13 grams gold per tonne. Orvana plans to carry out definition drilling and metallurgical testwork.
The other zone, hosted in a calc-silicate rock unit above the high-grade structure, is believed to have open-pit potential. Preliminary estimates put this resource at more than 4 million tonnes grading 2% copper and 2 grams gold.
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