29th Feb 2016 10:11
LONDON (Alliance News) - Ortac Resources Ltd said Monday that it has acquired a 12% stake in Casa Mining Ltd by participating in a private placing, giving it an interest in three mining licences in the South Kivu province in the Democratic Republic of Congo.
Ortac invested USD62,500 in the placing, subscribing of 625,000 shares in the company. Additionally Ortac Chairman Anthony Balme exercised rights between associated companies Carter Capital Ltd and AMC Ltd, resulting in Balme having an interested in 124,558 shares in Casa, or a 2.39% stake.
Casa is the 71.25% owner and operator of the Misisi Gold project in South Kivu, including the Akyanga deposit. It has spent USD30 million since 2009 identifying a 60 kilometre long 'corridor' prospective for gold, with multiple prospects identified, and with some drill and trench tested returning "significant intercepts."
"Our investment in Casa enables Ortac to secure exposure to a near term cash generating, low risk gold production operation, which can be brought into production quickly. Further, the investment enables Ortac and Casa to advance the larger scale opportunity of the Akyanga project, which holds real potential for a much larger gold mining operation," said Chief Executive Officer Vassilios Carellas in a statement.
Shares in Ortac were up 4.6% at 0.0340 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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