Ongwe Minerals Inc has closed its capital raise to Namibian investors early after demand exceeded the shares available.
Cirrus Securities, which is facilitating the Namibian leg of Ongwe Minerals’ capital raise, announced that the offer closed before the 17h00 deadline on Friday.
“The capital raise has been fully taken up. No further subscriptions will be accepted. Thank you for the overwhelming response,” Cirrus says in a notice on Friday.
Ongwe Minerals is a minerals exploration company listed on both the Canadian and Namibian stock exchanges.
The company announced, after Canada’s markets closed on Thursday, that it would be selling shares to raise up to CAD10 million (N$116.5 million).
The offer opened on Friday morning, with Namibian investors able to buy shares for CAD1.38 per share (N$16.35).
Ongwe’s press release to the Canadian market on Thursday says the funds would be used “for exploration work primarily in respect of its Namibian properties, and for working capital and general corporate purposes.”
The company primarily operates in Namibia and has three gold exploration projects: the Omajete Gold Project, the Khorixas Gold Project and the Outjo Gold Project.
Ongwe additionally has a gold exploration project in Egypt.
In announcing the capital raise, Cirrus Securities told potential investors that investing in mineral exploration companies involves a high degree of risk.
“Exploration is speculative and subject to geological, technical, regulatory, environmental and financial uncertainties. Only invest if you can bear the economic risk of a complete loss of your investment,” the announcement said.
