Oromin Financing
VANCOUVER, BRITISH COLUMBIA, Jul 28, 2010 (Marketwire via COMTEX News Network) —
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Oromin Explorations Ltd. (TSX:OLE)(OTCBB:OLEPF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and RBC Capital Markets, under which the underwriters have agreed to purchase on a “bought deal” basis by way of a short form prospectus, a total of 18,750,000 common shares (the “Shares”), at a price of C$0.80 per Share for gross proceeds of C$15 million.
The Shares will be offered in the Provinces of Ontario, Alberta and British Columbia by short form prospectus, and in such other jurisdictions, including the United States and in those jurisdictions outside of Canada which are agreed to by the Company and the Underwriters, where the Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.
The Underwriters shall also have the option to purchase from the Company up to an additional 2,812,500 Shares issued under the final prospectus to cover over-allotments and for market stabilization purposes.
Net proceeds of the offering will be used for exploration and general corporate purposes.
The offering is expected to close on or about August 19, 2010 and is subject to Oromin receiving all necessary regulatory approvals.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
To find out more about Oromin Explorations Ltd., visit www.oromin.com.
On behalf of the Board of Directors of OROMIN EXPLORATIONS LTD.
Chet Idziszek, President
SOURCE: Oromin Explorations Ltd.
dilution, but is this a positive?
now we know they are “well” financed for at least 6 , 9 or more months.
I believe I had this offering estimated almost to the penny! And nearly every other detail. Now I will crank up the crystal ball for another wild guess………we are finally done in 12 months or less at $2.90.
AB
On July 2nd I said,
“I was talking of the upward end of the range as some here are throwing around $1.50+ pp price. Personally, I think they will do it above the big $0.70 financing from last year. So I would expect the financing to be in the $0.75-$0.85 range.”
So I got that part right. Regarding a 12-month price target I think $2.90 is too high now with 120M shares outstanding. I think $1.50 – $2.00 is where I beleive the end game is for OLE. They’ve botched too many things along the way.
Arlene, how is your price target and length of time before either a buyout or mining affected by this further dilution? I belive it is about a 16 to 17% dilution. As always, thanks for your input.
Tony
tony–Still think buyout most likely late 2010 or early 2011 …..If gold reaches $1400 or more by year end , don’t believe price target will change from before the recent dilution…A lot is riding on these next two resource updates..Will re-evaluate at that time…Too many unknowns to have a strong opinion right now…Bottom line is ” I don’t know” …
Bottom line: we need a great resource update
Roro—-You say it so much more succintly & eloquently than I…..Indeed if the Resource Updates are truly great , share price could exceed the sum of both nailati’s AND AB’s wild guesses…
Roro–(anyone)–Any thoughts when the next Resource Update will actually be released…….After the PP is closed ???? (which would make the NR most likely the last full week of August ???)….Spot gold price should be heading sharply north about that same timeframe also , IMO …Could make for a very, very exciting week for us…
I actually spoke to DS a few weeks ago about release of the resource update, and although he was non-commital, he suggested very soon after the FS release. So I am a little surprised it did not come out before the end of July. Arlene, I think you are correct about the end of August.
A careful reading of Oromin’s FS press release shows that they have provided a partial resource update.
The SRK numbers: 2,990,800 ounces (to the end of January.)
Then, “In May 2010, the OJVG engaged DRA Americas Inc. (“DRA”) to complete mineral resource estimates for the Masato, Maki Medina, Niakafiri SE, Niakafiri SW, Kobokoto and Koulouqwinde Deposits, using drill data collected after the Feasibility Study cut-off dates in Q1 of 2010 for inclusion of geological data. At the time of this release, DRA has completed mineral resource estimates for Masato and Maki Medina.”
DRA numbers: 281,000 ounces (No cut-off date announced.)
Total: 2,990,800 + 281,000 = 3.27 million ounces. (Contained within this number is the Reserve of 1.42 million ounces).