The Ora Banda Mining Ltd (ASX: OBM) share price is up by 15.69% so far today at the time of writing, after the small cap ASX miner successfully completed its placement and institutional entitlement offer bookbuild.
The Ora Banda share price is up to 30 cents today, which isn’t far off its yearly high of 34 cents and puts it up over 200% since its March low point of 9.4 cents.
The company (formerly Eastern Goldfields) is a gold exploration and development company, and 100% owner of the Davyhurst Gold Project in the eastern goldfields region of Western Australia.
What did Ora Banda announce?
Ora Banda announced today that it has successfully completed its placement and institutional entitlement offer bookbuild.
The entitlement offer bookbuild was completed for $51.7 million, with a fully underwritten retail entitlement offer to raise $3.3 million opening on 10 July 2020. The offers were supported by both existing and new investors, domestically and internationally.
Ora Banda confirmed that the proceeds from the capital raising, together with existing cash, will see it fully funded for both capital and working capital requirements of recommencing production at its gold mine in Davyhurst. The raising also provides funding to ensure the miner’s minimum ongoing exploration programs across its 1,350km2 prospective landholding are met.
Ora Banda managing director David Quinlivan commented that “the capital raising ensures that Ora Banda remains debt-free as it proceeds towards gold production in January 2021.”
About the Ora Banda share price
The small cap ASX miner has been on a solid run since March this year. The company currently has an existing gold resource base and a fully refurbished gold processing plant in the gold mining region to the northwest of Kalgoorlie in Western Australia.
The Ora Banda share price has returned 145% since this time last year, and its current price of 30 cents per share puts its market capitalisation at $174.13 million.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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