Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Orinoco Gold raises A$2.6M on road to Cascavel production

Orinoco Gold (ASX:OGX) has raised circa A$2.6 million at $0.17 a share from a non-renounceable entitlements issue, which included an attaching option.

The funds will be used to bring its Cascavel Gold Project in Brazil into imminent production.

The gold sector is as good a place to be right now and for Orinoco it is an opportune time to join the ranks of global gold producers.

The high grade, high margin mining at Cascavel represents a small starter project but part of a low risk first production strategy.

The timing couldn't be better for Orinoco, with all-time high gold prices in Brazil.

Cascavel has yielded some stunning gold grades as high as 645g/t gold, with others including 3.66 metres at 142.62g/t gold, and 15 metres at 88g/t gold.

Shortfall

Orinoco said that the Shortfall equates to 16,053,707 shares and 5,351,085 attaching options and any placement of those securities will be at the discretion of the board.

The company has received interest from parties for shortfall and will be following these parties up over the coming days.

Orinoco has three months from the closing date of the entitlements issue to arrange for the placement of any of the shortfall securities.

Considering the record high price of gold in Brazil and imminent production, Orinoco should be able to place the shortfall with the already interested investors.

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.