Gold: Ora Banda wants to start fresh following ‘period of instability’
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Investors seem to be more forgiving of underperforming Australian mines in today’s high price gold environment.
Ora Banda Mining (ASX:OBM) is starting afresh “after a period of instability” (aka administration).
Consistent problems at its Davyhurst operation near Kalgoorlie and a failed $75m recapitalisation deal saw Ora Banda — formerly Eastern Goldfields — finally raise the white flag in November last year.
But the company has now relisted and reskinned as Ora Banda with $15m in the bank to undertake resource drill out, detailed mine planning and regional exploration programs at its flagship project.
“After a period of instability, we are particularly excited to be now getting on with the job of executing our resource drill out and exploration plans,” says new Ora Banda managing director David Quinlivan.
“We are well funded to target both new discoveries and complete the drilling and feasibility work necessary in order to allow a disciplined production restart.”
And administrators will keep Gascoyne Resources’ (ASX:GCY) Dalgaranga gold project running “in order to achieve the best value for creditors”.
Gascoyne, which only poured first gold from Dalgaranga in mid-2018, struggled with lower-than-expected grades before going into administration in June this year.
Administrator FTI has now been given additional time to either recapitalise Gascoyne or sell its assets.
Administrators want to pursue a “dual track” process to realise value from the assets for Gascoyne creditors.
This process involves either (or both) a recapitalisation of Gascoyne though a capital raising or merger, or an outright asset sale.