Ora Banda’s Davyhurst gold project in Ularring, WA, is set to receive $30 million in placement commitments to support its development.
Supported by new and exisiting investors, the placement allows Ora Banda to advance the project towards a final investment decision.
“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 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 placement price is set at $0.22 per share, a 13.7 per cent discount to the last trading price.
It follows Ora Banda’s recent strong exploration results, acceleration of regional exploration and continued ramp up of the Riverina underground mine.
“The company is now well funded and we thank our existing and new investors for their support,” Creagh said.
“We continue to execute our strategy in becoming the next mid tier miner in Australia.”
Davyhurst is located approximately 120km northwest of Kalgoorlie, within the Tier 1 gold mining province of the eastern goldfields.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.