Galena Successfully Raises $12 Million to Advance Abra

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) announces it has accepted binding commitments for a placement of 57,150,000 new shares at an issue price of $0.21 per share (“Placement Shares”), to raise $12 million before costs (“Placement”).

Managing Director, Alex Molyneux commented, “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.”

The Placement was significantly oversubscribed and well supported by existing and new investors including high-quality institutional investors. The Company’s largest holder and strategic investor Mr Timothy Andrew Roberts, subscribed for 11,150,000 Placement Shares to maintain his pro-rata shareholding at approximately 20%.

Proceeds from the Placement will be used to: (i) undertake optimisation drilling (including infill) and optimisation works at the Abra Base Metals Project in advance of commencement of underground mining; (ii) drill the newly interpreted gold and copper zone at Abra for the first time; and (iii) maintain a strong working capital position.

Hartleys Limited and Petra Capital Pty Ltd acted as Joint Lead Managers and Joint Bookrunners to the Placement and will receive 5.67% capital raising fees on funds raised.

FURTHER PLACEMENT DETAILS

The shares issued under the Placement will fall within the Company’s 15% placement capacity under ASX Listing Rule 7.1 and additional 10% placement capacity under ASX Listing Rule 7.1A. A total of 38,408,303 shares will be issued pursuant to Listing Rule 7.1 and 18,741,697 shares will be issued pursuant to Listing Rule 7.1A. Settlement is scheduled to occur on Thursday, 16 July 2020.

The Board of Directors of Galena authorised this announcement for release to the market.

Forward-looking statements The contents of this announcement reflect various technical and economic conditions at the time of writing. Given the nature of the resources industry, these conditions can
change significantly over relatively short periods of time. Consequently, actual results may vary from those in this announcement.

Some statements in this announcement regarding estimates or future events are forwardlooking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward-looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “Scheduled”, “intends”, “anticipates, “believes”, “potential”, “predict”, “foresee”, “proposed”, “aim”, “target”, “opportunity”, “could”, “nominal”, “conceptual” and similar expressions.

Forward-looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements are provided as a general guide only and should not be relied on as guarantee of future performance. Forward-looking statement may be affected by a range of variables that could cause actual results to differ
from estimated results and may cause the Company’s actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward-looking statements. So there can be no assurance that actual outcomes will not materially differ from these forward-looking statements.

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