Orocan Resource Corp. (CVE:OR) closed at a new 52-week high on Friday as traders reacted to the recently announced increase of a private shares offering.
OR share price gained 52% on a trading volume of 139 thousand last Friday. The trading activity was far above the 90 day average turnover of 32 thousand.
Their stock rallied after the company announced plans to increase the recently disclosed private placement. The decision was made when Orocan saw a significantly higher than expected demand from investors.
The financing was increased 50% to $1.5 million. 6 million units each valued at 25 cents per share will be offered in a non-brokered private placement. Units consist of one common share and one share purchase warrant exercisable at 40 cents per share over the next 18 months. Warrants are also subject to accelerated expiry in case OR price stays above 60 cents long enough.
Proceeds will be used to fund exploration activities on their British Columbia, Quebec and Ontario properties. This financing proposal still has to get approval from the Toronto stock exchange.
