Ora Banda Mining Ltd (ASX:OBM) (FRA:M6N) has received firm commitments from new and existing professional, and sophisticated investors to raise $21 million at 17 cents per share.
The placement was strongly supported by new and existing shareholders, with several Australian and international institutional investors introduced to the register.
Ora Banda has also launched a share purchase plan (SPP) to existing eligible shareholders, to raise a further $4 million at 17 cents per share.
The placement and SPP proceeds, together with the company’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 Davyhurst Gold Project.
“Highly credentialed Australian and offshore investors”
Ora Banda managing director David Quinlivan said: “We are very pleased with the support the placement received, and welcome a number of highly credentialed Australian and offshore investors to the register.
“On behalf of the Board, I would also like to thank our existing shareholders for their strong support.
Three mines online by the end of June
Quinlivan added: “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.”
Share purchase plan
Existing eligible shareholders are invited to participate in the SPP which is being undertaken at the same issue price as the placement, aiming to raise about $4 million.
The new shares issued pursuant to the SPP will rank pari passu with the company’s existing fully paid ordinary shares.
The SPP will provide eligible shareholders with the opportunity to increase their holding by up to A$30,000 without incurring any brokerage or transaction costs.
