Ora Banda Mining Ltd (ASX:OBM) is raising up to A$30 million in a well-supported two-tranche placement of new fully paid ordinary shares.
In a strong show of support, directors committed to an A$1.2 million total investment, subject to shareholder approval, while major shareholder Hawke’s Point committed to an A$8 million investment which is subject to shareholder approval.
Money raised will go towards the estimated capital cost of the Riverina underground mine and drilling to progress resource development and exploration activities.
Path to a +100,000-ounce profile
“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 +100,000 ounces per annum production profile in FY25,” Ora Banda managing director Luke Creagh said.
“The placement also ensures that we have sufficient funds to continue our exploration efforts, which are focused on expanding our high-grade resource inventory.”
About the placement
OBM will issue up to 267,110,668 fully paid ordinary shares at an issue price of 11.25 cents each, raising up to A$30 million (before costs).
The issue price represents a 13.5% discount to Ora Banda’s last traded price on March 22, 2023, of A$0.13 and a 9.9% discount to the 15-day VWAP up to and including March 22, 2023.
OBM will settle the placement in two tranches with up to 185,088,680 placement shares issued pursuant to the OBM’s existing placement capacity.
The remaining up to 82,021,988 placement shares will be issued subject to shareholder approval at a general meeting expected to be held in May 2023.
By the time the placement is finalised, the voting power of Hawke’s Point after the issue of the second tranche of placement shares will be 40.96%.