Galena Mining has raised $12 million to advance its Abra base metals project in the Gascoyne region of Western Australia.
The share placement will be used for optimisation drilling at the Abra project, which will move the project forward towards commencing underground mining.
It will also see Galena drill a gold and copper zone at Abra for the first time, while maintaining a strong working capital position.
“The strong institutional support for the placement is a testament to Abra’s appeal as a low risk, high return base and precious metals project. We look forward to progressing optimisation works parallel with the debt financing process before mining commences,” Galena managing director Alex Molyneux said.
Galena credited the share placement for creating a “strong financial platform” to also complete the debt financing process at the Abra project.
Abra is a lead-silver project that is 86.16 per cent owned by Galena, which has completed a bankable feasibility study for a mine and processing facility at the site.
The site has been given a 16-year life to produce high-grade lead-silver concentrate. Galena estimates Abra will produce 95,000 tonnes of lead and 805,000 ounces of silver per year when operating at its full capacity.