Ora Banda completes $20m cap raising, ramps up Davyhurst operations

Ora Banda Mining has completed a $20m cap raising to fund regional exploration, resource development drilling and operational improvements for its Davyhurst gold project in WA.

The company’s institutional placement of up to 100 million new shares priced at 5c raised $5m.

And an underwritten 4 for 13 accelerated non-renounceable entitlement offer of shares at the same price, raised about $15m.

Major shareholder, Hawke’s Point is expected to increase their voting power in the company to 45.3% via the offer, and the company has reached a sub-underwriting agreement with Euroz Hartleys.

Bringing Davyhurst back

Ora Banda Mining (ASX:OBM) brought the previously producing Davyhurst project back into production after completing remedial work programs in late January.

The region is host to multiple gold deposits with OBM currently carrying a total mineral resource inventory of 2.0 Moz at an average grade of 2.7 g/t Au and defined mineral reserves of 470koz at 2.4 g/t Au.

The company has received some high-grade intersections like 5m at 30.7g/t and 1m at 13.7g/t and are starting to generate cashflows from production.

And, OBM also owns an existing centralised 1.2 Mtpa processing hub, as well as additional established infrastructure at Davyhurst.

FY22 gold production of up to 68,000oz

The Davyhurst plant is now operating at a ~90kt monthly run rate and mining activities reaching the main ore zone of the Missouri pit, the company says.

OBM is expecting to deliver FY22 gold production of between 62,000oz to 68,000oz.

This article was developed in collaboration with Ora Banda Mining Limited, 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.