CHAMWE KAIRA
Ongwe Minerals has increased the size of its previously announced capital raising, with the Canadian-listed gold explorer seeking up to N$238 million to advance exploration activities at its Namibian gold projects.
The company announced that it has increased its “best efforts” listed issuer financing exemption (LIFE) offering to .up to 11.16 million common shares priced at C$1.38 each, targeting gross proceeds of approximately N$183 million.
The offering is being led by Beacon Securities, together with Research Capital Corporation and a syndicate of Canadian investment firms.
Ongwe has also granted the agents an option to sell up to an additional 2.174 million common shares at the same price, which could raise a further N$35.7 million if fully exercised.
Alongside the LIFE offering, the company plans to complete a non-brokered private placement of up to 3.33 million common shares to raise approximately N$54.7 million.
If both the LIFE offering and private placement are fully subscribed, the company could raise about N$238 million, excluding the agents’ option.
The company said proceeds from both capital raises will primarily fund exploration work on its Namibian mineral properties, as well as provide working capital and general corporate purposes.
The LIFE offering and private placement are expected to close on or about 25 June, subject to the necessary regulatory approvals, including conditional approval from the TSX Venture Exchange.
Ongwe said completion of the LIFE offering is not dependent on the private placement.
The company also indicated that some insiders may participate in the LIFE offering.
It said any insider participation would qualify as a related-party transaction but is expected to qualify for exemptions from formal valuation and minority shareholder approval requirements because the value involved would remain below 25% of the company’s market capitalization.
Ongwe Minerals is focused on gold exploration in Namibia’s emerging Northwest Damara Gold Belt.
Its flagship projects are the Omatjete and Khorixas gold projects.
At Omatjete, the company is exploring along the Okondeka Fault Zone, where it has identified the Manga Gold Prospect, covering a gold-in-soil anomaly measuring approximately 4.5 kilometres by one kilometre.
Initial drilling has confirmed gold-bearing bedrock, and further work is underway to determine the extent of the mineralised zone.
The Khorixas Gold Project, located about 60 kilometres west of the Eureka gold project, hosts the Belmont and K17 prospects.
Ongwe said the Belmont prospect has a surface gold footprint of about 12 by six kilometres, with exploration work identifying 18 target areas through calcrete and grab sampling.
The company is led by a team that previously worked on several major Namibian gold discoveries, including the Twin Hills, Eureka and Otjikoto gold deposits.
