Perth, WA — 30 May 2024 — Ora Gold Limited (ASX: OAU), a leading mineral exploration and development company, is pleased to announce a significant strategic alliance and equity placement with Westgold Resources Limited (ASX: WGX, OTCQX: WGXRF), a prominent Australian gold producer. This partnership marks a pivotal advancement in the development of Ora's Crown Prince deposit, further strengthening Ora’s position in the gold mining sector.
Key Highlights of the Strategic Alliance and Placement
- Strategic Alliance Formation: Ora has entered into a binding agreement to form a strategic alliance with Westgold with the primary aim of bringing the Crown Prince deposit into production.
- $6.0 Million Strategic Placement: Ora will issue new shares to Westgold at $0.0045 per share, resulting in approximately a 15% pro forma shareholding for Westgold in Ora, enhancing Ora's financial strength and operational capacity.
- Resource Development and Exploration: The alliance will accelerate the development of the Crown Prince deposit, which currently boasts a mineral resource estimate of 240koz at 4.1g/t Au. This includes advancing project development and mining proposal workstreams.
Operational Synergy and Infrastructure Utilisation
The partnership will leverage Westgold’s established infrastructure, including the Bluebird Mill, which is in close proximity to the Crown Prince deposit. The strategic collaboration is expected to extend beyond mere ore processing, encompassing comprehensive operational and logistical cooperation.
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."
Contact details:
Jane Morgan