PERTH (miningweekly.com) – ASX-listed Ora Banda Mining, previously known as Eastern Goldfields, will raise A$30-million as part of efforts to recapitalize the company.
Eastern Goldfields went into administration in 2018 after a A$75-million recapitalization transaction fell through.
The capital raising will comprise the offer of convertible notes valued at A$22.4-million and a one-for-one non-renounceable entitlement offer to raise a further A$7.6-million.
The completion of a capital raising is a condition precedent to effect a deed of company arrangement, with Ora shareholders expected to meet on June 7 to vote on the capital raise.
“We are very pleased to be on the home straight in respect of this transaction. The recapitalization of the company has been a very significant endeavor, involving six months of hard work by a group of key stakeholders,” said Ora MD David Quinlivan.
“The capital raising is the last phase of the transaction and the successful receipt of commitments for A$30-million demonstrates that the market supports our vision for the company. We are glad to have clearly exceeded the minimum raising pursuant to the deed of company arrangement of A$22-million, and are looking forward to executing on our project development strategy, and unlocking the significant value of Davyhurst.”