PERTH (miningweekly.com) – ASX-listed Ora Banda Mining will raise up to A$30-million from a share placement to institutional, sophisticated and professional investors, to fund its Riverina underground mine, in Western Australia.
The placement will comprise the issue of more than 267.1-million shares, at a price of 11.25c each, representing a 13.5% discount to Ora Banda’s last trading price on March 22, and a 9.9% discount to the company’s 15-day volume weighted average share price.
More than 185-million of the shares will be issued under the company’s existing placement capacity, with the remaining shares subject to shareholder approval at a meeting scheduled in May. Ora Banda’s largest shareholder, Hawke’s Point will subscribe for A$8-million worth of new shares, while the company’s board members will subscribe for a further A$1.2-million.
Following the capital raise, Hawke’s Point would hold a 40.96% interest in Ora Banda.
“We are very pleased with the strong support received for the placement from our existing shareholders and look forward to welcoming a number of new institutional, professional and sophisticated investors to the company’s share register,” said MD Luke Creagh.
“The placement provides Ora Banda with funds to meet the estimated capital costs for the development of the Riverina underground mine which will set Ora Banda on the path to achieving a more than 100 000 oz/y production profile in 2025. The placement also ensures that we have sufficient funds to continue our exploration efforts, which are focussed on expanding our high-grade resource inventory.”