Orogen Gold PLC (LON:ORE) will re-develop their business to become a cash shell following a re-evaluation of its gold assets, the precious-metals company announced on Tuesday.
In a statement, the company said that it is “no longer in shareholders interests to continue financial support” of its gold exploration activities. As a result, the company is looking towards becoming an AIM Rule 15 cash shell, following an appropriate reverse takeover within the upcoming six months.
In addition, the company announced that it has conditionally raised £3 million in capital with new and exiting investors. Shareholders will also be given the option to subscribe to further shares in order to help the company raise an additional £470,460.
Alongside this, the company have proposed a capital reorganisation plan which will result in every 250 Existing Ordinary Shares becoming one New Ordinary Share and 249 New Deferred Shares.
The company said: “Immediately following the general meeting, it is intended that Colin Bird, Edward Slowey, Michael Nolan and Alan Mooney will step down from the board and that Steven Metcalfe and Mark Collingbourne will be appointed as non-executive directors of the company with immediate effect, subject to the necessary regulatory approvals,”.
Orogen Gold plc is a UK AIM listed company, which is primarily focused in gold exploration across Europe and the US. Its locations include exploration sites in its Mutsk project in Armenia and its Silverton Project in Nevada, USA.
Elsewhere in the markets, the value of cryptocurrency Bitcoin recently surpassed gold for the first time, following a surge in interest in China. Nevertheless, it is difficult to compare the two values given the fact that Bitcoin remains a virtual currency, whilst gold is materially valued in weight.
Shares of Oregon Gold plc are currently down 37.42 percent at 10.45AM as the market reacts to the news (GMT).