Ora Banda Mining completes retail component of strongly supported A$15 million entitlement offer

Ora Banda Mining Ltd (ASX:OBM) (FRA:M6N) has completed the retail component of its 1 for 9 accelerated non-renounceable pro-rata entitlement offer of new fully paid ordinary shares in the company. Around 14.5 million new shares will be issued at the offer price of A$0.23 per new share, to raise about A$3.3 million (before costs) with total funds raised from the entitlement offer being A$15 million. The company received valid applications from shareholders for 10,618,011 new shares, around 73% of the new shares available for issue under the retail entitlement offer, and also received valid applications for shortfall shares for 21,548,910 shares. This resulted in the retail entitlement offer being fully subscribed by eligible retail shareholders with A$7.4 million in applications received versus A$3.3 million on offer. Recommencing Davyhurst production Together with the A$40 million placement, of which the A$22.1 million tranche two remains subject to shareholder approval, and existing cash reserves, this will see the company fully funded for the capital costs and working capital requirements of recommencing production at the Davyhurst Gold Processing Plant in Western Australia Ora Banda managing director David Quinlivan said: “We are very pleased with the support received from our retail shareholders as part of the successful capital raising undertaken by Ora Banda which will provide the capital required to recommence production at Davyhurst, targeted for quarter one in CY 2021.” The results of the retail entitlement offer. Next steps The second tranche of the placement comprises around 96.1 million new shares to be issued to Hawke’s Point and a director, to raise about A$22.1 million and remains subject to shareholder approval at a general meeting of the company’s shareholders in early September 2020. New shares under the retail entitlement offer are expected to be allotted on Friday, July 31, 2020, and commence trading on a normal settlement basis on Monday, August 3, 2020. The new shares will rank equally with fully paid ordinary Ora Banda shares as at their issue date.