Gold developer Ora Banda Mining has launched a $55 million equity raising following the completion of a definitive feasibility study (DFS) at its flagship Davyhurst project in Western Australia’s Eastern Goldfields.
The raising comprises of a two-tranche placement of up to 174 million new shares equating to about $40m, as well as the issue of about 66 million new shares in a 1-for-9 underwritten entitlement offer for a further $15m.
All new shares under the offer will be issued at a price of 23 cents per share, representing a 9.8 per cent discount to the last traded price of 25.5 cents on 2 July this year.
The Perth-based company said the proceeds of the capital raise would be utilised for the final-phase development and recommencement of the mine; including the kick-start of the previously shuttered 1.2 million tonnes per annum (mtpa) processing plant, associated site infrastructure and accommodation, as well as future exploration within the 112 tenement, 1,336sqkm project area.
Davyhurst, which includes Mt Ida, contains a total mineral resource of 23.7 million tonnes at 2.8 grams per tonne for 2.1 million ounces of contained gold.
Ora Banda managing director David Quinlivan said the capital raising was a significant step towards achieving its production goals at the mine.
“It will provide the funding required for the production re-start and will strongly position Ora Banda to become a debt-free gold production company in Q1 CY2021,” Mr Quinlivan said.