LONDON (ShareCast) - (ShareCast News) - Shares in Orogen Gold have dived more than a third after it raised almost £4m, proposed a capital reorganisation and unveiled a new strategy to become a cash shell and seek a reverse takeover, at the same time changing its name.
Orogen Gold said a review found that it was no longer in shareholders' interests for the company to continue providing financial support for its mineral exploration activities.

"The board is therefore proposing to dispose of the company's mineral exploration interests and change the company's business strategy," it said, adding that there would be a name change to Orogen Plc.

Orogen Gold said it intended to become an AIM cash shell and complete a suitable reverse takeover within the next six months.

It also raised £3m in a conditional placing with new and existing investors, with proceeds being used to explore corporate opportunities and for working capital. A further £470,460 could be raised via an open offer to qualifying shareholders.

"At the same time, the company is proposing a capital reorganisation, which, following a consolidation and sub-division, will result in every 250 existing ordinary shares becoming one new ordinary share and 249 new deffered shares."

At 11:28 GMT, shares in AIM-quoted Orogen were down 35.48% to 0.01p each.

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