PERTH (miningweekly.com) – ASX-listed Ora Banda Mining has completed the bookbuild for its share placement and institutional entitlement offer, to raise A$51.7-million, with a fully underwritten retail entitlement offer set to raise a further A$3.3-million, and to open on July 10.
The company has received firm commitments for around A$40-million of its placement to institutional investors, and approximately A$11.7-million for the institutional component of its one-for-nine accelerated non-renounceable pro-rata entitlement offer.
Ora Banda last week announced plans for a A$55-million capital raise to underpin the restart activities at the Davyhurst gold project, in Western Australia, after a newly completed definitive feasibility study estimated that it could produce about 81 000 oz/y of gold over a mine life of an initial five years, at a C1 cost of A$1 427/oz.
The project is expected to require a capital investment of A$45-million, and will have a pay-back period of 14 months, which could reduce to seven months at a gold price of A$2 550/oz.
“We are very pleased with the strong support of our largest shareholders as the company raises the capital required to recommence gold production at Davyhurst. Importantly, the capital raising ensures that Ora Banda remains debt free as it proceeds towards gold production in January 2021,” said MD David Quinlivan.
“We are proud to welcome a number of new, high quality institutional investors located both domestically and internationally. We are also pleased to provide existing retail shareholders with the ability to participate in the retail entitlement offer, on the same terms as the institutional shareholders and investors.”
The placement shares will be issued in two tranches, with the first 77.76-million to be issued under the company’s existing placement capacity, at a price of 23c each, while the second tranche of 96.1-million shares will be subject to shareholder approval.
The retail entitlement offer is expected to raise a further A$3.3-million through a one-for-nine non-renounceable pro-rata entitlement offer, also priced at 23c a share, and will close on July 24.