Ongwe raises N$302m to fast-track Namibia gold exploration

Canadian-listed gold explorer Ongwe Minerals has raised approximately N$302 million (CAD$23 million) to accelerate exploration across its Namibian gold portfolio, with drilling already underway at the Khorixas Gold Project and a major diamond drilling campaign scheduled to begin at Omatjete later this month.

The funding was secured through a brokered Listed Issuer Financing Exemption (LIFE) offering and a concurrent private placement, after strong demand from existing shareholders and new institutional, family office and retail investors prompted the company to increase the size of the capital raise.

Chief Executive Officer Dave Underwood said the company had initially targeted a smaller raise but expanded the offering following overwhelming investor interest.

“We are delighted by the amount of interest we received for this Ongwe financing. Due to the high levels of demand, we upsized the offering to approximately CAD$23 million. A substantial number of existing shareholders elected to participate again and we also added a number of high-quality specialist and generalist institutions, family offices and individuals to our roster. As a result of our recent dual listing on the Namibian Stock Exchange, we were able to offer a sizeable allocation to Namibian investors,” Underwood said.

Under the LIFE offering, Ongwe issued 13.33 million common shares at CAD$1.38 (approximately N$15.87) each, raising gross proceeds of about N$242 million (CAD$18.4 million).

The total includes the full exercise of the agents’ option, which added more than 2.17 million shares.

The company also completed a concurrent non-brokered private placement, issuing a further 3.33 million common shares at the same price to institutional and retail investors outside Canada.

The placement, arranged by Cirrus Capital (Pty) Ltd, generated an additional N$60 million (CAD$4.6 million).

Underwood said the proceeds will primarily fund an expanded exploration programme across the company’s Namibian assets.

“The proceeds of this financing will be used to expand and accelerate our exploration on our various gold projects in Namibia. RC drilling has already started on the Khorixas project and will be followed by a diamond drilling campaign at Omatjete to test the Manga and Nguni targets, starting at the end of July. We have also expanded our regional exploration programme and now have four sampling teams working continuously to cover the rest of the Omatjete licence package,” he said.

In addition to exploration activities, a portion of the funds will be used for working capital and general corporate purposes.

The financing remains subject to final approval by the TSX Venture Exchange.

Ongwe Minerals is focused exclusively on gold exploration in Namibia. The company is led by the team behind Osino Resources, which discovered and advanced the Twin Hills and Eureka gold deposits before Osino was acquired by Shanjin International in a CAD$368 million transaction.

The same team also advanced the Otjikoto gold deposit, which was sold to B2Gold for CAD$180 million.

Ongwe’s exploration portfolio is centred on the Omatjete and Khorixas gold projects in Namibia’s emerging Northwest Damara Gold Belt, where the company is targeting the discovery and development of large-scale gold deposits.

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