PERTH (miningweekly.com) – The newly revamped Ora Banda Mining, previously known as Eastern Goldfields, will raise A$18.5-million through a share placement to accelerate its exploration programme in Western Australia.
Ora Banda will issue 100-million new shares, at a price of 18.5c each, to raise the funds, with the company telling shareholders that the placement has been strongly supported by both existing shareholders and new sophisticated and professional investors.
The company’s major shareholder Hawke’s Point Holdings has conditionally subscribed for 42.4-million new shares, to maintain its interest in the company, with the Hawke’s Point placement subject to shareholder approval.
The balance of the shares will be placed under the company’s existing placement capacity.
“Ora Banda now has a clear and well funded pathway to execute the full resource and reserve definition drill-out and feasibility study programme set out in the company’s recapitalisation prospectus in the most efficient manner possible,” said MD David Quinlivan.
“We are also looking forward to significantly expanding our exploration efforts at Davyhurst and are confident that this capital will materially improve the positioning of Ora Banda for delivery of a definitive feasibility study early next year, as well as ensuring we can move quickly into production following completion of the study.”
Ora Banda resumed trading on the ASX in June this year under its new banner after a successful recapitalization process, which included a A$30-million capital raise. The company’s administrators resigned at the end of May, giving control back to the board of directors.