Ora Banda Mining Ltd (ASX:OBM) has completed a A$5 million institutional placement and a A$7.7 million institutional entitlement offer.
The company received firm commitments of A$5 million for its placement of new fully paid ordinary shares to sophisticated and professional investors and around A$7.7 million for the institutional component of its 4-for-13 accelerated non-renounceable pro-rata entitlement offer.
Proceeds from the equity raising, together with existing cash, will be used for exploration costs, drilling to progress resource development, operational improvements, working capital and offer costs.
“Very pleased” with strong support
Ora Banda managing director Peter Nicholson said: “We are very pleased with the strong support received from our shareholders and in particular, our largest shareholder, Hawke’s Point, who has committed to take up their entitlement offer and to sub-underwrite the balance of the entitlement offer.
“The capital raising provides Ora Banda with the funding required to complete various operational improvements to the plant considered important to enable steady-state production at Davyhurst and increase its exploration activities including further resource definition drilling.
“We are very pleased with the support received from our institutional shareholders and are also pleased to provide existing retail shareholders with the ability to participate in the offer, on the same terms.”
Placement details
The placement and institutional entitlement offer raised A$12.7 million at A$0.05 per new share and were strongly supported by existing shareholders and new sophisticated and professional investors.
Around 84% of entitlements available to eligible institutional shareholders in the institutional entitlement offer were taken up.
New shares not taken up by both eligible and ineligible institutional shareholders have been fully allocated to existing shareholders and new investors.
The placement is not underwritten.
The underwritten retail component of the entitlement offer seeks to raise around A$7.3 million through a 4-for-13 non-renounceable pro-rata entitlement offer of new shares, bringing the total funds to be raised to around A$20 million before costs.
Anticipated issue date of new shares under the placement and institutional entitlement offer is March 3, 2022.
Retail entitlement offer
Eligible retail shareholders on the record date of 5:00pm Western Standard Time (AWST) on February 24, 2022, with registered addresses in Australia and New Zealand will be invited to participate in the offer.
The retail entitlement offer will open on March 1, 2022, and close on March 17, 2022, subject to any extension by the company.
Eligible retail shareholders can take up all, part or none of their entitlement. Eligible retail shareholders who subscribe for their full entitlement will also be invited to subscribe for new shares over and above their entitlement, as set out in the retail offer booklet.
Further details about the offer will be detailed in booklet that will be lodged with the ASX on March 1, 2022, and is expected to be despatched to eligible retail shareholders on March 1, 2022.
The closing date for receipt of acceptance forms under the offer is 5.00pm AWST on March 17, 2022, subject to any extension.