Ora Banda is raising up to $20m to fund regional exploration, resource development drilling and operational improvements for its Davyhurst gold project.

This consists of an institutional placement of up to 100 million new shares priced at 5c to raise $5m and an underwritten 4 for 13 accelerated non-renounceable entitlement offer of shares at the same price to raise about $15m.

Major shareholder Hawke’s Point has committed to subscribe for its 39.5% entitlement in the entitlement offer and has reached a sub-underwriting agreement with underwriters Euroz Hartleys and Fresh Underwriters Pty Ltd for the remaining 60.5%.

Ora Banda (ASX:OBM) managing director Peter Nicholson said the capital raising enables the company to pursue its regional exploration program while continuing the ongoing ramp-up of its producing Davyhurst project.

“With the Davyhurst plant now operating at a ~90kt 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 62,000oz to 68,000oz,” he added.

“We thank our shareholders for their ongoing support and are glad to be able to offer eligible shareholders an opportunity to participate in the capital raising.”

Consistent gold production

During January, the company produced 5,185oz of gold after milling over 90,000t of ore.

Plant performance over the past four months has been consistent with a planned six-monthly maintenance shutdown included in January’s performance while the operational team continue to improve plant performance towards nameplate capacity of 100,000t per month.

Open pit mining at Missouri and Riverina is continuing with initial pre-stripping works commencing in January at the Sand King mine, the fourth mine to be commenced by the company in 18 months.

Grassroots drill bears fruit

Meanwhile, the company’s grassroots regional exploration drilling program has delivered positive results.

First pass aircore drilling returned results such as 4m grading 2.64 grams per tonne (g/t) gold from surface at the Greater Pacific target, 4m at 3.8g/t gold from 56m and 20m at 1.2g/t gold from 64m at Sunraysia North, and 12m at 0.6g/t gold from 36m at Kangaroo.

Nicholson said it was exciting to see significant assays – particularly economic grades – from this early drilling.

“Identifying gold anomalism in holes 80 metres apart means that there is plenty of follow up work to be done on these prospects,” he added.

Further assays are pending from this program.

 

 

 

This article was developed in collaboration with Ora Banda, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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