Ora Gold Limited (ASX: OAU), a prominent mineral exploration and development company, has announced a transformative strategic alliance and equity placement with Westgold Resources Limited, a major Australian gold producer.
The partnership marks a pivotal milestone in the development of Ora’s Crown Prince deposit, further solidifying the company’s position in the gold mining sector.
Ora has entered into a binding agreement to form a strategic alliance with Westgold, with the primary objective of bringing the Crown Prince deposit into production.
Ora will issue new shares to Westgold at $0.0045 per share, resulting in approximately a 15 per cent pro forma shareholding for Westgold in Ora.
This equity placement will significantly enhance Ora’s financial strength and operational capacity.
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.
The strategic partnership will leverage Westgold’s established infrastructure, including the Bluebird Mill, which is in close proximity to the Crown Prince deposit.
The collaboration is expected to extend beyond mere ore processing, encompassing comprehensive operational and logistical cooperation.
“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,” said Alex Passmore, CEO of Ora Gold.
“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.”
The strategic alliance and equity placement with Westgold Resources position Ora Gold for significant growth and development, leveraging the strengths of both companies to unlock the full potential of the Crown Prince deposit and drive long-term value creation for shareholders.
