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Abra shored up by $17 million placement

placement

Galena Mining has accepted binding commitments for a placement of 136 million new shares at an issue price of 12.5 cents per share, to raise $17 million before costs.

Galena managing director Tony James said with first concentrate production coming in early 2023, the company felt it critical to ensure its Abra Project in Western Australia had an adequate funding buffer to deal with any unforeseen circumstances during the ramp-up phase of the mine.

“It’s very pleasing to see the ongoing strong support from our key stakeholders who continue to support us in the development of our world-class lead-silver mine,” he said.

The placement was significantly oversubscribed and well supported mainly by existing stakeholders. The company’s largest shareholder and strategic investor Timothy Andrew Roberts subscribed for 35,318,665 placement shares for about $4.41m.

Taurus Mining Finance Fund, the provider of the Taurus debt facilities to the Abra mine and a key stakeholder in the ongoing success of the Project, subscribed for 30,007,862 placement shares for about $3.75m.

Proceeds will be used to provide Abra a temporary unsecured reserve facility, which will be made available during the critical commissioning of Abra, up until the project completion tests are satisfied under the Taurus facility.

Its purpose will be to provide a working capital and cost buffer for Abra to draw in the event of unforeseen circumstances and costs, such as weather-related road or port closure.

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