Ora Banda (ASX:OBM) strengthens its financial stance with million-dollar capital raising


  • Ora Banda Mining Limited has completed a placement to raise around AU$21 million.
  • An SPP has also been announced to raise an additional AU$4 million from present eligible shareholders.
  • The total funds raised shall be utilised to execute various activities scheduled to be undertaken at the Davyhurst project.

Ora Banda Mining Limited (ASX:OBM) shares have resumed trading on ASX after they were placed in a trading halt on 04 June 2021, pending an announcement that was shared on Tuesday, 08 June 2021. 

In the latest development, the Australian gold producer has confirmed commitments to raise around AU$21 million from professional as well as sophisticated investors. For this purpose, OBM had completed a non-underwritten placement of around 124 million through the issue of new fully paid ordinary shares at an offer price of AU$0.17 per New Share.

DID YOU READ: 3 key deposits underpinning mine production for Ora Banda Mining (ASX:OBM)   

A further 588,236 new shares be issued to OBM’s Managing Director Mr David Quinlivan, subject to approval from shareholders. OBM seeks to secure this approval in the general meeting of shareholders scheduled to be held on or around 19 July 2021.

With strong support from new and present shareholders, the placement onboarded numerous Australian and international institutional investors introduced to the company's register.

Source: OBM Announcement 08/06/2021

PREVIOUS UPDATE: Ora Banda (ASX:OBM) expedites work across multiple prospective deposits despite challenges

SPP to raise an additional AU$4 million

Besides the placement, OBM also declared an SPP to current eligible shareholders with a view to raising around an additional AU$4 million at the issue price similar to that of the placement.

The latest SPP by OBM serves its current eligible shareholders with an opportunity to expand their holding by up to AU$30,000 at no extra brokerage or transaction costs.

The SPP is not underwritten, and new shares issued under the SPP shall rank equal with the present fully paid ordinary shares of the Company.

Moreover, OBM retains the right to apply a scale-back of applications (to be applied at the discretion of the Board) in case overall demand surpasses AU$4 million.

The tentative timetable regarding various events for the placement and SPP is given below:

Source: OBM Announcement 08/06/2021

GROUND REPORT: Ora Banda Mining (ASX:OBM) concludes capital work program; prepares for further work  

Utilisation of the funds raised

The overall funds raised through the placement and SPP, combined with OBM’s current cash balance, shall be directed to finance several works to be undertaken at OBM’s Davyhurst Gold Project, including the following:

  • Resource definition and reserve replacement
  • Maiden reserves work
  • Regional exploration
  • Ramp-up costs and working capital requirements

In view of the successful placement, OBM has decided not to go ahead with the earlier announced working capital and hedging facility in February 2021. However, the Company remains open to revisiting new working capital and hedging facilities in the future.

Overall, the capital raising enhances OBM’s financial stance at just the right time when the Company is all set to progress various exploration programs. The funding now received shall further underpin the long-term future of the Company.

Petra Capital Pty Ltd and Euroz Hartleys Limited acted as Bookrunners and Joint Lead Managers to the placement and share purchase plan, whereas Amicaa Advisors Pty Ltd acted as co-manager to the placement and share purchase plan.

MARCH QUARTER PROGRESS: Ora Banda Mining (ASX:OBM) progresses across projects in full swing throughout March quarter

The OBM stock traded at AU$0.175 on 08 June 2021.





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