- Ora Banda Mining (OBM) is looking to raise $20 million for upcoming exploration programs at the Davyhurst Gold Project
- The funds will be raised through a $5 million placement and $15 million non-renounceable entitlement offer, with shares to be issued at five cents each
- Under the entitlement offer, shareholders will be able to buy four new shares for every 13 exisiting shares they own
- Funds from the raise will be used for exploration costs, drilling to progress resource development and operational improvements at the Davyhurst Gold Project
- Company shares last traded at 7.7 cents per share
Ora Banda Mining (OBM) is looking to raise $20 million for upcoming exploration programs.
The equity raise includes a $5 million placement and $15 million non-renounceable entitlement offer.
Under the placement, Ora Banda will issue up to 100 million new shares at five cents per share, a 35.1 per cent discount to the last traded price.
While under the entitlement offer, shareholders will be able to buy four new shares for every 13 exisiting shares they own.
Notably, Ora Banda’s major shareholder, Hawke’s Point, has agreed to subscribe for its 39.5 per cent entitlement in the entitlement offer.
Hawke’s Point has also entered into a sub-underwriting arrangement with the underwriters in regards to the remaining 60.5 per cent of the new shares to be issued in the offer.
If following the completion of the offer, Hawke’s Point’s voting power in the company is less than its voting power prior to the offer, Ora Banda has will issue Hawke’s a number of new shares.
This will result in Hawke’s voting power being equal to its pre-offer voting power on the same terms as the offer, subject to shareholder approval.
However, if Hawke’s voting power is equal or greater than the pre-offer voting power then no new shares will be issued.
As a result of the offer, Hawke’s may increase its voting power from 39.5 per cent to a maximum of 53.7 per cent.
Funds from the raise will be used for exploration costs, drilling to progress resource development and operational improvements at the Davyhurst Gold Project.
“The capital raising enables the Company to pursue its exciting regional exploration program whilst continuing the ongoing ramp-up of its Davyhurst Gold Project,” Managing Director Peter Nicholson said.
“With the Davyhurst plant now operating at around 90,000 tonnes monthly run rate and
mining activities reaching the main ore zone of the Missouri pit, we are expecting to deliver FY22 gold production of between 62,000 to 68,000 ounces.”
“We thank our shareholders for their ongoing support and are glad be able to offer eligible shareholders an opportunity to participate in the capital raising.”
Ora Banda entered a trading halt as it completes this capital raise. This means company shares will be paused until Thursday, February 24, or when another announcement about the raise is released to the market.
Company shares last traded at 7.7 cents per share.