- Ora Banda Mining (OBM) receives firm commitments for its $5 million placement and $7.7 million institutional entitlement offer
- On February 22, the company announced it was looking to raise up to $20 million for upcoming exploration programs at the Davyhurst Gold Project
- Under the placement, 100 million shares will be issued to investors at five cents while the institutional offer allows participants to buy four new shares for every 13 owned
- Ora Banda will now undertake the retail component of the entitlement offer to raise the remaining $7.3 million
- Shares in Ora Banda are down 28.2 per cent and are trading at 5.1 cents
Ora Banda Mining (OBM) has received firm commitments for its $5 million placement and $7.7 million institutional entitlement offer.
On February 22, the company announced it was looking to raise up to $20 million for upcoming exploration programs at the Davyhurst Gold Project.
“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,” Managing Director Peter Nicholson said.
Under the placement, 100 million new fully-paid ordinary shares will be issued to sophisticated and professional investors at five cents.
This price represents a 35.1 per cent discount to Ora Banda’s last trading price of 7.7 cents on February 21.
The institutional entitlement offer had a take up of roughly 84 per cent with participants able to buy four new shares for every 13 they own. Shares will also be priced at five cents.
Shares not taken up have been fully allocated to existing shareholders and new investors.
Shares under both the placement and institutional entitlement offer are expected to be issued on March 3.
Ora Banda will now undertake the retail component of the entitlement offer to raise the remaining $7.3 million.
The retail offer will be on the same terms as the institutional offer, with participants able to buy four new shares for every 13 they own.
Those who take up their full entitlement will also be invited to subscribe for new shares over and above their entitlement.
The retail offer will open on March 1 and close on March 17.
Shares in Ora Banda were down 28.2 per cent and were trading at 5.1 cents at 12:45 pm AEDT.