Ora Banda Mining Ltd (ASX:OBM) has launched an equity raising campaign for up to A$20 million comprising an institutional placement of up to A$5 million and a 4 for 13 accelerated non-renounceable entitlement offer to raise approximately A$15 million.
Proceeds together with the company’s existing cash balance will be used for exploration costs, drilling, operational improvements and working capital and offer costs.
The A$20 million equity raising will comprise of:
- A single-tranche institutional placement of up to 100 million new shares to raise up to A$5 million;
- 300 million new shares issued under an underwritten 4 for 13 accelerated non-renounceable entitlement offer to raise approximately A$15 million; and
- The entitlement offer will consist of an Institutional Entitlement Offer and a Retail Entitlement Offer.
All new shares under the offer will be issued at A$0.05 per new share, representing a:
- 35.1% discount to the last traded price of A$0.077 on February 21, 2022; and
- 27.7% discount to the TERP of A$0.069.
Ora Banda will have up to approximately 1,374,224,505 shares on issue upon completion of the offer.
Placement
The placement will comprise of up to 100 million new fully paid ordinary Ora Banda shares to certain sophisticated and professional investors to raise up to A$5 million at A$0.05 per share.
Institutional entitlement offer
Eligible institutional shareholders will be invited to participate in the accelerated institutional component of the entitlement offer, which will be conducted today, along with the placement.
Should there be any shortfall under the institutional component of the entitlement offer, those shortfall shares will be offered to investors through institutional bookbuild.
Retail Entitlement Offer
Eligible retail shareholders on February 24 at 5PM Western Standard Time with registered addresses in Australia and New Zealand will be invited to participate in the Retail Entitlement Offer at the same price as the placement.
The offer will open on March 1 and close on March 17.
Further details about the Retail Entitlement Offer will be detailed in the Retail Offer Booklet that will be lodged with the ASX on March 1.
Hawke’s Point agreement
Ora Banda’s major shareholder Hawke’s Point has committed to subscribe for its 39.5% entitlement in the offer.
It has also entered into a sub-underwriting arrangement with the joint lead managers and underwriters with respect to the remaining 60.5% of the new shares to be issued under the entitlement offer.
- By Duncan Bailey