Gold miner Orosur Mining (LON:OMI, CVE:OMI) has successfully completed a private placing it announced after the London market close yesterday, raising US$13.5 million before expenses, which will be used to acquire the Talca gold property in Chile. In a statement yesterday, Orosur said it has entered into an agreement to acquire Talca in Chile’s Region IV from Compañía Minera Demetrio Tello and other parties and that it wanted to raise up to US$15 million in a private placement to institutional and other investors. Canaccord Genuity placed a total of 12.5 million shares at 66 pence each, a discount of 9 percent from yesterday's closing price. Orosur’s directors also took part in the fundraising. Chief executive David Fowler said today: “We're delighted that we have raised the necessary funds for the acquisition and exploration programme at Talca, a project which we feel has great potential. I would also like to take this opportunity to thank our shareholders for their continued support and look forward to updating them on our progress." Talca has been owned and operated by the Tellos family for approximately 40 years, having produced at an estimated overall average grade of approximately 13 grammes per tonne gold, from a system of 7 outcropping high grade veins. Talca is located in northern Chile, 375 kilometres North of Santiago. The property hosts two gold mines that have been exploited by artisanal non-mechanized mining during 2011. Historic gold production is approximately 300,000oz of gold. Gold has been historically mined at Talca to depths of more than 250 metres. Grades between 10 – 20 g/t gold have been reported and visible gold is common. Other historical and current operations in the district have been mined to depths of up to 600 metres. Upon completion of the acquisition, anticipated around August 2011, Orosur will begin an accelerated exploration program including the completion of underground mine topography, and sampling and surface geologic mapping and sampling as a priority. The company has already started a 480 kilometres linear ground magnetic survey, surface mapping and geochemical sampling has commenced. The company hopes to advance the initial exploration swiftly in order to plan a first pass exploration drill campaign which will consist of approximately 7,500 meters in the next six months. The company plans to fast track production from the mine. Following an aggressive exploration program to commence in 2011, Orosur aims to publish its maiden NI43-101 compliant resources report during the second quarter of 2012. It expects a scoping study to commence during the second quarter of 2012. Broker Matrix notes that the transaction appears to have cleared the only precondition of 66.66% acceptance among family members of Talca, with Orosur securing 71% in lock-in agreement. Matrix has a target price of 145p on the shares which midday stood at 70.5p, down 2p, valuing Orosur at £46m.

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