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

Image Source: Ora Banda Mining Website

Highlights

  • Ora Banda has received firm commitments worth AU$5 million for its placement and AU$7.7 million for its non-renounceable pro-rata entitlement offer.
  • The placement and entitlement offer have raised a total of AU$12.7 million at an offer price of AU$0.05 a share.
  • The retail entitlement offer would open on 1 March 2022 and close on 17 March 2022

In a crucial update regarding its capital raising process, gold mining company Ora Banda Mining Ltd (ASX:OBM) announced that it has secured firm commitments worth AU12.7 million for its placement and entitlement offer.

The company has received firm commitments worth AU$5 million for its placement from sophisticated and professional investors and AU$7.7 million for its non-renounceable pro-rata entitlement offer.

Ora Banda’s AU$20M equity raising plan on track

As announced in a recent update, OBM plans to raise AU$20 million to ramp up exploration at its Davyhurst Gold Project. The AU$20M equity raising program comprises of an AU$5 million institutional placement and an AU$15 million underwritten 4 for 13 Accelerated Non-Renounceable Entitlement Offer.

The placement and entitlement offer have raised a total of AU$12.7 million at an offer price of AU$0.05 a share. The equity raising received strong support from existing shareholders and new professional and sophisticated investors.

Roughly 84% of the entitlement available for eligible institutional shareholders under the entitlement offer were taken up. Shares which remained unsubscribed by the eligible and ineligible institutional shareholders were fully allocated to existing OBM shareholders and new investors.

New shares that will be issued under the company’s existing capacity as per the ASX Listing Rule 7.1A (97,422,450 New Shares) and ASX Listing Rule 7.1 (2,577,550 New Shares). The shares are expected to be issued on 3 March 2022.

Retail entitlement Offer

The company will invite eligible existing retail shareholders with registered addresses in Australia and New Zealand on the record date, 24 February 2022, at 5:00pm Western Standard Time (AWST), to participate in the Retail Entitlement Offer at the same issue price of AU$0.05 a share.

The entitlement offer would open on 1 March 2022 and close on 17 March 2022, subject to extension by the company. The company plans to lodge Retail Offer Booklet for the Retail Entitlement Offer with the ASX on 1 March 2022 and will dispatch the same to eligible retail shareholders on the same date. Eligible retail shareholders who subscribe for their entire entitlement may also subscribe to new shares over and above their quota upon invitation.

All acceptance forms need to be submitted before 17 March 2022 on 5.00pm AWST, subject to extension by the company.

Shares of Ora Banda traded at AU$0.052 on 24 February 2022 with a market capitalisation of AU$75.01 million.


 


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