Sponsored

Ora Banda (ASX:OBM) on fast track with recent capital raising and exploration progress

Image Source: OBM presentation 26 November 2021

Highlights

  • Ora Banda Mining has successfully transitioned from a mineral explorer to a mineral producer.
  • OBM’s exploration activities across the project have delivered significant assay results.
  • OBM remains optimistic about securing due value recognition in the current year.

Australian gold producer Ora Banda Mining Ltd (ASX:OBM) continues to unlock significant value from its strategic and prospective landholdings, especially the Davyhurst Gold Project (DGP) and its advanced project areas.

OBM envisions to generate superior long-term returns for its shareholders by establishing the Company as a significant gold producer. The company holds one of the most dominant ground positions in the Eastern Goldfields.

Let us look at the Company’s recent developments.

RELATED ARTICLE: Ora Banda (ASX:OBM) clocks revenue of AU$79.60 million in half-year FY2022

Transitioning from explorer to producer

The year 2021 proved to be a momentous one for OBM as it transitioned from being an exploration company to a gold producing company, despite the disruptions caused by the pandemic. The transition was underpinned by the successful pouring of first gold from its Davyhurst gold operations in the highly prospective Eastern Goldfields region of WA.

Image Source: OBM presentation 26 November 2021

RELATED ARTICLE: Ora Banda Mining’s (ASX:OBM) capital raise plan moves ahead, AU$12.7M funding secured

Notably, OBM produced around 34,521 ounces of gold during the half-year period ending on 31 December 2021. Moreover, the Company had indicated that the production level continues to increase as OBM continues to refine its mining techniques and bed down the Davyhurst processing plant.

Significant results despite challenges

The Company has been engaged in mining and sales of gold along with mine development and exploration activities across its projects in Western Australia. OBM’s work across the project has been delivering significant assay results, including from first-pass wide-spaced AC drilling.

Victoria Workings Prospect Cross Section 6702700mN (Source: OBM Announcement 25/10/21)

Moreover, the Company remains optimistic about receiving additional significant assay results from various prospects while continuing drilling operations to secure a long-term future for the Company.

RELATED ARTICLE: Ora Banda (ASX:OBM) looks to raise AU$20 million under equity raising

OBM raising AU$20 million capital to rev up exploration

In February 2022, OBM launched an equity raising of up to AU$20 million, via a AU$5 million institutional placement and a AU$15 million entitlement offer. The Company has received strong support from shareholders, particularly Hawke’s Point, which is the largest shareholder who has committed to participate in the entitlement offer and also sub-underwrite the balance of the entitlement offer.

RELATED ARTICLE: Ora Banda (ASX:OBM) looks set to continue its exploration success in 2022

Moreover, the capital raising offers OBM the funding required to finalise several operational enhancements to the plant that are considered significant to enable steady state production at Davyhurst. Moreover, this will enable the Company to accelerate its exploration activities, including additional resource definition drilling.

RELATED ARTICLE: Ora Banda (ASX:OBM) makes a giant stride in December quarter

OBM remains committed to advancing further work across the significant deposits located across its land assets.

OBM stock was noted at AU$0.05 on 22 March 2022 with a market capitalisation of AU$60.35 million.


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and