Noricum raises £2m for Rotgulden gold and precious metals projects

PUBLISHED: Oct 03 2013 @ 06:28 | Comments (0) |

Noricum Gold (LSE:NMG), an Austrian focused gold exploration and development company, has announced that it has raised £2 million (before expenses) by way of an oversubscribed placing of 200,000,000 new ordinary shares of no par value in the capital of the compmay, with new and existing shareholders in the Company at a price of 1 pence per Placing Share.

The funds will be used to advance the Company’s exploration programme across its highly prospective Austrian gold and precious metal assets, with a particular focus on the Company’s 100% owned Rotgulden gold and precious metal licence.

Noricum commenced its current year drill programme at Rotgulden in August. Results to date have been extremely positive with significant high grade gold (‘Au’), silver (‘Ag’) and copper (‘Cu’) intercepts.

Highlights:

· RZ04 – 6m @ 17.4 g/t Au and 27.8 g/t Ag from 9m

· RZ04 – 2m @ 41.4 g/t Au and 198 g/t Ag as well as 3.96% copper (‘Cu’) from 20m

· XB01 – 3.9m @ 51.53 g/t Au, 237.77 g/t Ag and 2.69% Cu from 4.7m

o Including 1.1m @ 181 g/t Au, 807 g/t Ag and 8.75% Cu

· RZ01 – 3.2m @ 5.36 g/t Au, 17.17 g/t Ag from 12m

· RZ02 – 7.2m @ 2.13 g/t Au, 12.16 g/t Ag from 12.8m

o Including 1.6m @5.51 g/t Au and 15.5 g/t Ag

· RZ05 – 1.2m @3.69 g/t Au, 27.2 g/t Ag from 11.8m

Drilling has been progressing well and the drill rig continues to test some deeper targets at location C as well as some further exploration at targets along strike.

Noricum Gold Managing Director Greg Kuenzel said the company has “had a fantastic start to this year’s drilling campaign with the first five holes returning significant high grade mineralisation at our Rotgülden project. These new funds will not only provide us with a secure platform from which to plan our 2014 work programme, but will also allow us to accelerate the current drilling campaign underground as well as focus our attention on the larger regional scale targets.

“We are pleased to see strong support from our existing shareholders and welcome the support of our new shareholders. We remain excited about the prospects for the Company and look forward to updating the market with further progress reports, including additional drilling results, over the coming months” said Mr Kuenzel.

In addition to the Placing Shares, a further 1,250,000 ordinary shares of no par value have today been issued to various consultants to the Company, in lieu of fees, at a price of 1 pence per share (‘the Consultants’ Shares’).

The Placing Shares and Consultants’ Shares will rank pari passu in all respects with the existing ordinary shares of no par value in the capital of the Company. Application will be made to the London Stock Exchange for the Placing Shares and the Consultants’ Shares to be admitted to trading on AIM. It is expected that Admission will become effective on or around 10 October 2013.

As a result of the issue of the Placing Shares and Consultants’ Shares as described above, the issued share capital of the Company now consists of 956,439,377 ordinary shares of no par value.

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