- Ora Banda Mining (OBM) has received firm commitments to undertake a $21 million placement
- Roughly 124 million new fully paid ordinary shares will be issued to professional and sophisticated investors at 17 cents
- Ora Banda will also undertake a share purchase plan to raise a further $4 million
- The money from the placement and share purchase plan will be used to fund maiden reserve work, regional exploration and resource definition
- Shares in Ora Banda are down 9.76 per cent and are trading at 18.5 cents at 12:30 am AEST
Ora Banda Mining (OBM) has received firm commitments to undertake a $21 million placement.
Roughly 124 million new fully paid ordinary shares will be issued to professional and sophisticated investors at 17 cents.
This price represents a 17.1 per cent discount to Ora Banda’s share price on June 7 of 20.5 cents and a 17.1 per cent discount to the five-day volume-weighted average price of 20.5 cents.
Subject to shareholder approval, 588,236 shares will be issued to Managing Director David Quinlivan to raise $100,000.
Ora Banda has also announced it will be undertaking a share purchase plan (SPP) to raise a further $4 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
If demand exceeds $4 million, Ora Banda has the right to scale-back applications.
The SPP will open on June 11, close on June 16 and shares will be issued on July 9.
Ora Banda will use the money from the placement and SPP to fund maiden reserve work, regional exploration and resource definition.
“We are very pleased with the support the placement received and welcome a number of highly credential Australian and offshore investors to the register,” Mr Quinlivan said.
“Funding to progress resource and reserve definition and advance high priority exploration targets ahead of when previously planned will further underpin the company’s long-term future.”
Shares in Ora Banda were down 12.2 per cent and trading at 18 cents at 12:30 am AEST.