Orogen raises capital, eyes capital reorganisation

Orogen Gold has undertaken a placing, open offer, and its proposing a capital reorganisation as it changes of name and strategy.

It had completed a review of its operations and concluded that it was no longer in shareholders' interests to continue to provide financial support for the company's mineral exploration activities.

Directors were thus proposing to dispose of the company's mineral exploration interests and change the company's business strategy. Its new name would be Orogen Plc.

"The company intends to become an AIM Rule 15 cash shell and to complete a suitable reverse takeover within the next six months," Orogen said in a statement.

Orogen said it had raised £3m gross through a conditional placing that would be used to explore corporate opportunities and for working capital. Additionally, it intended to launch an open offer to raise up to a further £470,460.

"At the same time, the company is proposing a capital reorganisation, which, following a consolidation and sub-division, will result in every 250 existing ordinary shares becoming one new ordinary share and 249 new deferred shares."