Galena Mining Ltd (ASX:G1A) (FRA:GM6) has welcomed the further A$40 million cash investment from Toho Zinc Co Ltd to its joint venture company Abra Mining Pty Ltd (AMPL) and has issued additional shares to Toho’s wholly-owned subsidiary CBH Western Australia Pty Ltd.
Monies received represent the final A$40 million investment sub-tranche of the overall A$90 million investment into AMPL by Toho under the Investment Agreement.
Based on the shares outstanding following Toho’s latest investment, AMPL is now owned 60% by Galena and 40% by Toho.
As per the terms of the Investment Agreement, Galena will continue to appoint the majority of directors to the AMPL board.
“Very strong supporter”
Speaking to the investment, Galena managing director Tony James said: “Toho continues to be a very strong supporter of the Abra Project since joining Galena as our JV partner just over two years ago.
“With this very strong and supportive relationship, we look forward to building the Abra mine and delivering our high-value, high-grade lead-silver concentrate to Japan and other international markets from Q1 2023.”
Robust financial position
AMPL is in a robust financial position to continue project works at Abra, which are now accelerating quickly following the recent final investment decision.
The underground mining contractor is expected to commence decline development in the coming months and physical on-site plant construction is expected to commence in the fourth quarter of 2021.
First production of Abra’s high-value, high-grade lead-silver concentrate is scheduled for the first quarter of 2023.