Ora Banda Mining Ltd (ASX:OBM) has received firm commitments from institutional investors to raise $30 million in a share placement, at an issue price of $0.22 per new share, to advance the Davyhurst Gold Project in Western Australia.
The company says the placement received strong support by both new and existing international and domestic institutional, professional and sophisticated investors.
The funding will go to the rapid advance of the Sand King deposit of the Davyhurst Gold Project, working towards a final investment decision (FID) as a potential second underground mine.
The focus on the new prospective area comes after strong results from Sand King in recent exploration.
Read: Ora Banda Mining discovers high-grade gold lode system at Davyhurst’s Sand King prospect
Becoming the next mid-tier miner
"We are at an exciting inflection point as the company pivots away from our current low grade open pit mill feed to high grade underground mill feed as its primary source of ore,” Ora Banda Mining managing director Luke Creagh said.
“In addition, the outstanding recent drilling results from the Phase 1 program at Sand King position it as a potential second underground mine in the future which could materially increase production.
“The company is now well funded, and we thank our existing and new investors for their support. We continue to execute our strategy in becoming the next mid-tier miner in Australia.”
The placement funds will also go to accelerating regional exploration across OBM’s 1,070-square-kilometre holding, and for general working capital purposes.