Ora Banda Mining (ASX:OBM) has secured firm commitments for a single tranche placement of under 137 million new fully paid ordinary shares at an issue price of $0.22 per share to raise $30 million.
Canaccord Genuity (Australia) and Euroz Hartleys are acting as joint lead managers to the placement.
Ora Banada, which has a $435.41 million market capitalisation, says the placement strengthens its balance sheet as it rapidly advances Sand King towards a final investment decision (FID) while continuing the on-schedule ramp up of the Riverina Underground Mine.
According to Ora Banda, the placement was ‘strongly’ supported by new and existing international and domestic institutional, professional, and sophisticated investors.
The price of the placement is a 13.7% discount to the last trading price of $0.255, a 12.4% discount to the 5-day volume weighted average price (VWAP), and a 9.4% discount to the 10 day VWAP.
New shares will be issued 8 March 2024.
Managing Director Luke Creagh says: “We are at an exciting inflection point as the company pivots away from our current low grade open pit mill feed to high-grade underground mill feed as its primary source of ore.
In addition, the outstanding recent drilling results from the phase one program at Sand King position it as a potential second underground mine in the future which could materially increase production.
The company is now well funded and we thank our existing and new investors for their support. We continue to execute our strategy in becoming the next mid tier miner in Australia.”
Ora Banda Mining is a gold explorer and developer which is the sole owner of the Davyhurst Gold Project in the highly productive eastern goldfields region of Western Australia.
Davyhurst sits just 120km northwest of the regional mining centre of Kalgoorlie.
Write to Adam Drought at Mining.com.au
Images: Ora Banda Mining
