Odyssey funds Turkish projects (November 05, 2003)

Following in the footsteps of its peers, Odyssey Resources (ODX-V) is attempting to raise $2 million via a private placement.

Pacific International Securities shall try to place 6.7 million units of the junior at 30 apiece. A unit consists of a share and half a warrant, with a full warrant entitling the holder to purchase an additional share for a year after the deal closes, at 45. Should Odyssey’s shares trade higher than 65 for 4 consecutive months, the warrants expire one month later.

Odyssey will pay an agent’s fee of $15,000, a commission equal to 7% of the gross proceeds raised and issue up to 670,000 options. The options expire one year after the deal closes and are exercisable at 30 each.

Net proceeds are earmarked for exploration in Turkey, where the company is focusing on its Altintepe and Tavsun gold properties. Recently, at the former, the company discovered a new gold-bearing oxide prospect close to where a deposit of 4.35 million tonnes grading 1.62 grams gold per tonne has been outlined, using a 0.4-gram cutoff grade.

A trenching program at Tavsan was launched in mid-September, focusing on near-surface sediment-hosted gold targets. Five such targets were outlined by Teck Cominco (TEK-T) in the 1990s, of which one was further expanded to a resource of 7.9 million tonnes grading 1.15 grams.

Drilling will follow.

Odyssey has an option from Teck to earn 100% interests in both properties. At Altintepe, it must spend US$550,000 by May 2004 and US$1.9 million over the following two years; at Tavsan, it must spend US$1.4 million, as well as issue 75,000 shares and 125,000 warrants (exercisable at 35 apiece).

Odyssey rose two pennies over the day, finishing at 36. The gain came on a volume of 275,200 shares, or more than twice its daily average.