CHAMWE KAIRA
Canadian and Namibian listed gold explorer Ongwe Minerals has raised approximately C$23 million (about N$265 million) through a brokered listed issuer financing exemption (LIFE) offering and a concurrent private placement, with the proceeds earmarked primarily for expanding exploration activities at its Namibian gold projects.
The company, which is listed on both the TSX Venture Exchange and the Namibian Stock Exchange (NSX), said it closed the financing after strong investor demand, prompting it to increase the size of the offering.
The LIFE offering generated C$18.4 million through the issue of 13.33 million common shares at C$1.38 per share, while a concurrent non-brokered private placement raised an additional C$4.6 million through the sale of 3.33 million shares at the same price.
Ongwe Minerals chief executive officer Dave Underwood said the financing attracted significant interest from both existing and new investors, including Namibian participants following the company’s recent dual listing on the NSX.
“We are delighted by the amount of interest we received for this Ongwe financing. Due to the high levels of demand, we upsized the offering to approximately C$23 million,” Underwood said.
He added that a substantial number of existing shareholders participated again, while the company also attracted specialist and generalist institutional investors, family offices and individual investors.
“As a result of our recent dual listing onto the Namibian Stock Exchange, we were able to offer a sizable allocation to Namibian investors,” he said.
Underwood said the capital raised will be used to expand and accelerate exploration across the company’s Namibian gold portfolio.
Reverse circulation (RC) drilling has already begun at the Khorixas Gold Project, while a diamond drilling campaign at the Omatjete Gold Project is scheduled to start at the end of July to test the Manga and Nguni targets.
The company has also expanded its regional exploration programme and now has four sampling teams operating continuously across the broader Omatjete licence area.
In addition to exploration, part of the proceeds will be used for working capital and general corporate purposes.
The private placement was arranged by Cirrus Capital (Pty) Ltd, targeting institutional and retail investors outside Canada.
Directors and senior officers of the company also participated in the offering, subscribing for approximately 217,391 shares worth around C$300 000.
The financing remains subject to final approval by the TSX Venture Exchange.
Ongwe Minerals is focused on discovering and developing gold deposits in Namibia’s emerging Northwest Damara Gold Belt, with its flagship assets being the Omatjete and Khorixas gold projects.
The company’s management team previously led the development of several significant Namibian gold discoveries, including Osino Resources’ Twin Hills and Eureka deposits, as well as the advancement of the Otjikoto Gold Mine, which was sold to B2Gold before entering production.
