ASX-listed Ora Banda has received commitments for a A$30-million capital raise to advance its Davyhurst project, in Western Australia’s Eastern Goldfields region.
The company received commitments for a single-tranche placement of 136.36-million new fully paid shares at A$0.22 a share.
The placement enables Ora Banda to rapidly advance the Sand King prospect, part of the overall Davyhurst project, towards a final investment decision as a potential second underground mine and to accelerate regional exploration across its 1 070 km2 landholding, as well as supplement general working capital.
“We are at an exciting inflection point as the company pivots away from our current low grade openpit mill feed to high grade underground mill feed as its primary source of ore. In addition, the outstanding recent drilling results from the Phase 1 programme at Sand King position it as a potential second underground mine in the future which could materially increase production,” said MD Luke Creagh.
The placement price of A$0.22 a new share represents a 13.7% discount to the last trading price of A$0.255, a 12.4% discount to the five-day volume weighted average price (VWAP) and a 9.4% discount to the ten-day VWAP.