Ora Banda Mining (ASX:OBM) - Managing Director, David Quinlivan - The Market Herald
Managing Director, David Quinlivan
Source: HotCopper
  • Ora Banda Mining (OBM) has raised $51.7 million through a successful placement and entitlement offer
  • The company will also raise an additional $3.3 million in capital via a fully underwritten retail entitlement offer, which will open on July 10
  • The $55 million will be spent on recommencing production at its Davyhurst Gold Project in WA, as well as further exploration activity
  • Shares in Ora Banda closed up 18.6 per cent today at 30 cents per share

Ora Banda Mining (OBM) has successfully raised $51.7 million via a placement and entitlement offer.

The miner said both offers were well supported by existing shareholders, as well as a number of new international and domestic investors.

Ora Banda first signalled it was looking at a capital raise venture when it entered a trading halt on July 3, 2020.

Of the $51.7 million raised, $40 million came from its placement to institutional investors, and $11.7 million came from an accelerated non-renounceable entitlement offer.

Under the terms of both deals, shares will be issued at a price of 23 cents per share.

But the shares will be issued in two tranches, with the second tranch requiring shareholder approval.

If the second tranch of new shares is approved, it will see major shareholder Hawke's Point increase its interest in the company to 47.13 per cent.

Ora Banda also announced today a further $3.3 million is expected to be raised through a non-renounceable pro-rata retail entitlement offer of one new share for every nine already held.

The offer has been underwritten by Hartley's and opens to eligible shareholders on July 10.

If the $3.3 million raise iss successful, the total $55 million in funding will be spent on recommencing production at Ora Banda's Davyhurst Gold Project in WA, as well as further exploration activity.

Ora Banda hopes to reopen Davyhurst in 2021, and recently completed a definitive feasibility study on the gold project.

“We are very pleased with the strong support of our largest shareholders as the company raises the capital required to recommence gold production at Davyhurst," said Ora Banda Managing Director David Quinlivan.

"Importantly, the capital raising ensures that Ora Banda remains debt-free as it proceeds towards gold production in January 2021," he added.

Shares in Ora Banda closed up 18.6 per cent today at 30 cents per share.


OBM by the numbers
More From The Market Herald
Macarthur Minerals (ASX:MIO) - New General Manager, International Sales and Marketing, Jonghyun (Richard) Moon (centre) - The Market Herald

" Macarthur Minerals (ASX:MIO) appoints new Int. Sales & Marketing General Manager

Exploration company Macarthur Minerals (MIO) has appointed Jonghyun (Richard) Moon as its new General Manager, International Sales & Marketing.
Kin Mining raise $2.1M to fund gold project

" Sky Metals (ASX:SKY) earns 80pc in NSW gold projects

Sky Metals (SKY) has now earned an 80 per cent interest on the Cullarin and Kangiara Gold Projects in New South Wales.
Apollo Consolidated (ASX:AOP) identifies new gold mineralisation at Lake Rebecca

" Apollo Consolidated (ASX:AOP) highlights significant gold at Lake Rebecca

Apollo Consolidated’s (AOP) latest drilling results highlight further gold potential from drilling at its Lake Rebecca Gold Project in the Goldfields region of
Indiana Resources (ASX:IDA) - Non Executive Chair, Bronwyn Barnes - The Market Herald

" Indiana (ASX:IDA) to purchase South Australian Gold Projects

Indiana Resources (IDA) has signed a deal with private company Patron Resources to purchase South Australian gold projects.