PERTH (miningweekly.com) – ASX-listed Ora Banda Mining will raise A$21-million through a share placement, and has targeted a further A$4-million in capital raise through a share purchase plan (SPP).

The gold miner on Tuesday reported that the company had received commitments from professional and sophisticated investors for the placement of 124-million new fully paid ordinary shares at a price of 17c each, to raise A$21-million.  

The placement price represented a 17.1% discount to Ora Banda’s last trading price, and a 17.1% discount to the company’s five-day volume weighted average share price.

The placement will be conducted under the company’s existing placement capacity, and will not require shareholder approval. However, shareholder approval would be required for the issue of 588 236 new shares to MD David Quinlivan.

“We are very pleased with the support the placement received, and welcome a number of highly credentialed Australian and offshore investors to the register,” said Quinlivan.

“2021 has been an incredibly busy time for Ora Banda. It was the year in which the company started three new mines, installed and commissioned a range of significant infrastructure on site including a new liquefied natural gas power station, built a new camp, completed the planned process plant remedial works programme on time and within budget and then recommissioned this plant. All of this achieved during a year of significant global “Covid-19” disruptions. With three mines on line by the end of June, the company has a solid and flexible production base as processing ramps up to nameplate capacity.

“Funding to progress resource and reserve definition and advance high priority exploration targets ahead of when previously planned will further underpin the company’s long-term future,” he said.

In addition to the share placement, Ora Banda will also undertake an SPP, giving existing shareholders the opportunity to subscribe for up to A$30 000 worth of new shares in the company, also priced at 17c each, to raise an additional A$4-million.

The SPP will open on June 11 and will close on June 30.