• Gold explorer Ora Banda Mining (OBM) has completed the retail component of a $15 million entitlement offer as part of a $55 million capital raising plan
  • The company received subscriptions for roughly $7.4 million worth of shares, despite having only $3.3 million of shares available under the offer
  • The company has now raised $32.9 million through the first tranche of a share placement and the entitlement offer
  • The second tranche of the placement will bring in another $22.1 million in late August, as long as Ora Banda can receive shareholder approval for the raise
  • The funds will be used to restart production at the company's Davyhurst Gold Project in Western Australia
  • Shares in Ora Banda lost 6.58 per cent today to close worth 36 cents each

Gold explorer Ora Banda Mining (OBM) has completed the retail component of a $15 million entitlement offer as part of a $55 million capital raising plan.

The company has already pocketed $29.6 million from the first tranche of a share placement and an institutional entitlement offer.

The second tranche of the placement is subject to shareholder approval and, if approved, will bring in another $22.1 million in late August.

All new shares issued under the capital raise are priced at 23 cents each.

Today, Ora Banda said it received subscriptions for $7.4 million in the one-for-nine retail entitlement offer, despite only having $3.3 million worth of shares on offer.

While retail shareholders subscribed for roughly 73 per cent of new shares available under the entitlement offer, those who subscribed wanted more than they were offered; Ora Banda received $4.95 million in shortfall applications, meaning it comfortably raised the full $3.3 million on offer.

The new funds raised from the placement and entitlement offer will go towards restarting production at the company's Davyhurst Gold Project in Western Australia.

Importantly, with the full $55 million on the way as long as shareholders approve the second tranche of the placement, this means Ora Banda will soon be fully funded to recommence work at Davyhurst.

Ora Banda Managing Director David Quinlivan said the company expects to start production back up on the project in early 2021.

"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 CY2021," David said.

Today's news was released as ASX was closing shop for the day, meaning it's not yet certain how investors will react to the announcement.

Today, shares in the company lost 6.58 per cent to close worth 36 cents each. Ora Banda has a $255 million market cap.