Orca Gold announces $15M private placement

pcNewsWireOrca Gold Inc. (TSX-V: ORG) intends to complete a non-brokered private placement of 37,500,000 units at a price of $0.40 per unit for gross proceeds of $15 million.

Proceeds will primarily be used to fund ongoing operations at the company’s 70%-owned Block 14 Gold Project, where the company has recently initiated a feasibility study, aimed for completion in Q1 2018, which will assist the company in reaching a development decision.

News Release

Orca Gold Announces Non-Brokered Private Placement to Raise $15,000,000

Vancouver, British Columbia, June 12, 2017 – Orca Gold Inc. (TSX.V:ORG) (“Orca” or the “Company”) announces the intention to raise $15 million by way of a non-brokered private placement of 37,500,000 units at a price of $0.40 per unit (the “Private Placement”). Each unit will consist of one common share of the Company and a one-half share purchase warrant, with each full warrant exercisable at $0.55 for 12 months from the date of closing of the Private Placement.

All common shares issued under the Private Placement will be subject to a four-month plus one day hold period in accordance with applicable Canadian securities laws. Closing of the Private Placement is subject to receipt of all necessary regulatory approvals, including those of the TSX Venture Exchange, and certain other customary closing conditions, including, but not limited to, execution of subscription agreements between the Company and the subscribers.

Subject to review by the TSX Venture Exchange, a 6% finder’s fee may be payable on all or a portion of the subscriptions accepted by Orca.

The proceeds of the Private Placement will primarily be used to fund ongoing operations at the Company’s 70%-owned Block 14 Gold Project, where the Company has recently initiated a feasibility study (“FS”), aimed for completion in Q1 2018, which will assist the Company in reaching a development decision. The FS programme will include 25,000-30,000 metres of drilling directed towards further expanding the resource at the Galat Sufar South (“GSS”) and Wadi Doum deposits.

The recently announced revised preliminary economic assessment (“Revised PEA”) (News Release: May 30, 2017, and June 1, 2017) demonstrates that the current designs of the open pits are restricted from going deeper due to a lack of data and the limits of the existing resource model. Drilling beyond the currently designed pit boundaries is expected to increase the resource base at Block 14 and expand the open pits even further.

In parallel with this extensive new drill program, the FS will also examine the potential of increasing the process throughput of the project beyond 3.4 Mtpa. This is the direct result of the recent discovery of an extensive new aquifer system 80 kilometres to the southwest of the intended plant site (News Release: May 30, 2017, and June 1, 2017).

“This equity financing marks the first time that Orca has raised any significant funds since our reverse takeover of Canaco Resources in April 2013. In a very short period we have advanced Block 14 from an artisanal working to a robust gold project with strong economics and further upside to be determined,” commented Richard Clark, CEO and Director of Orca Gold. “With a replenished treasury, we can maintain our momentum in expediting Block 14 towards a construction decision. This next drilling campaign will look to maximize resource expansion towards an even larger plant throughput, as we no longer appear to be limited by the availability of water.”

About Orca Gold Inc.

Orca Gold Inc. (TSX-V: ORG) is a Canadian resource company focused on exploration opportunities in Africa. Our flagship asset is the 70%-owned Block 14 Gold Project in the Republic of the Sudan. Block 14 is situated on a 2,170 km2 concession. The Company is currently conducting a Feasibility Study on the project, which is scheduled for completion in Q1 2018. A recently announced Revised PEA on Block 14 indicates that the project, at a gold price of US$1,200/oz, has an in-pit Indicated resource of 1,928 Koz and Inferred resource of 173 Koz, for an updated pre-tax NPV7% of US$278.2M and an after-tax NPV7% of US$ 227.7M (see company news release on May 30, 2017).

On behalf of the Board of Directors:
Richard P. Clark
CEO and Director

For Further Information, Contact:
Elina Chow
Investor Relations
416.645.0935 x 226