Ora Banda has received binding commitments to raise $30 million to fund its Riverina underground gold mine in Western Australia.
The money will be used to fund the capital costs of the Riverina mine and drilling to progress resource development and exploration activities, according to the company.
Hawke’s Point, Ora Banda’s major shareholder, has committed $8 million of the total, with company directors committing a further $1.2 million.
“We are very pleased with the strong support received for the placement from our existing shareholders and look forward to welcoming a number of new institutional, professional and sophisticated investors to the company’s share register,” Ora Banda managing director Luke Creagh said.
Production at Riverina has experienced some minor hiccups in the last few years, with the site producing a high amount of viscous, low-density oxide material within the gold ore in May 2021.
As a result, gold production was revised to 13,000–18,000 ounces for the 2021 financial year, down from the original 35,000-ounce guidance.
Additionally, work at the mine temporarily ceased in April 2022 when Ora Banda announced it would focus on the Missouri open pit mine instead.
But with a new placement underway, it seems mining at the site will ramp back up in the coming months.
“The placement provides Ora Banda with funds to meet the estimated capital costs for the development of the Riverina underground mine which will set Ora Banda on the path to achieving an over 100,000 ounces per annum production profile in 2025,” Creagh said.
“The placement also ensures that we have sufficient funds to continue our exploration efforts, which are focussed on expanding our high-grade resource inventory.”