THE BOURSE WHISPERER: Ora Banda Mining (ASX: OBM) received support for its recent run of operational achievements with commitments from professional and sophisticated investors to raise $21 million.
Ora Banda Mining completed the placement of approximately 124 million new fully paid ordinary shares at an offer price of 17 cents per new share, receiving support from both new and existing shareholders, with Australian and international institutional investors introduced to the register.
The company also announced a share purchase plan (SPP) to existing eligible shareholders, to raise approximately a further $4 million, also at the placement issue price of 17 cents.
The placement and SPP proceeds, together with Ora Banda’s existing cash balance, will be used to fund resource definition and reserve replacement, maiden reserves work, regional exploration, ramp up costs and working capital for the company’s Davyhurst gold project in Western Australia.
“We are very pleased with the support the placement received, and welcome a number of highly credentialed Australian and offshore investors to the register,” Ora Banda Mining managing director David Quinlivan said in the company’s ASX announcement.
“On behalf of the Board, I would also like to thank our existing shareholders for their strong support.
“FY 2021 has been an incredibly busy time for Ora Banda.
“It was the year in which the company started three new mines, installed and commissioned a range of significant infrastructure on site including a new LNG power station, built a new camp, completed the planned process plant remedial works program on time and within budget and then recommissioned this plant.
“All of this achieved during a year of significant global “Covid-19” disruptions.
“With three mines online by the end of June, the company has a solid and flexible production base as processing ramps up to nameplate capacity.
“Funding to progress resource and reserve definition and advance high priority exploration targets ahead of when previously planned will further underpin the company’s long-term future.”
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