Galena Raises $20 Million And Updates Production Guidance

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) announces that it has accepted binding commitments for a placement of 133,333,334 fully paid ordinary shares (“New Shares”) at an issue price of $0.15 per share (“Placement Shares”), to raise A$20 million before costs (“Placement”). In conjunction with the Placement, the Company has released updated production guidance for CY2023.

HIGHLIGHTS

• Weather and technical impacts at the Abra mine have resulted in a delayed ramp-up to expected steady-state production.
  
• Galena has undertaken a placement to provide additional working capital funding for the Abra ramp-up period.
• Strong support from existing shareholders and new institutional investors,
  • Existing largest investor, Warburton Group subscribed for ~A$3.6M.
  • Project financing debt provider, Taurus subscribed for ~A$1.0M.
  • Directors subscribed for ~A$0.4M.
• Abra provides updated CY2023 guidance based on current mine planning information, production delays due to current rainfall event and increased production costs.

PLACEMENT DETAILS

The Placement was oversubscribed and well supported by existing stakeholders.

The Company’s largest shareholder and strategic investor, Warburton Group, subscribed for 23,832,000 Placement Shares for ~A$3.6 million.

Taurus Mining Finance Fund No 2 LP (“Taurus”), the provider of the Taurus Debt Facilities to the Abra Base Metals Mine and a key stakeholder in the ongoing success of the Project, subscribed for 6,666,667 Placement Shares for ~A$1.0 million (see Galena ASX announcements of 12 November 2020 and 15 June 2021 respectively for more information on the Taurus Debt Facilities).

The Company’s Directors subscribed for 2,756,667 Placement shares for ~A$0.4 million, to be issued subject to shareholder approval.

The Placement issue price of $0.15 per share represents a 36.6% discount to the 10-day volume weighted average price (“VWAP”) to 6 April 2023 (A$0.237 per share).

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