Galena Mining

Galena Successfully Raises $17 Million

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce it has accepted binding commitments for a placement of 136,000,000 new shares at an issue price of $0.125 per share (“Placement Shares”), to raise $17 million before costs (“Placement”).


HIGHLIGHTS

  • Placement was well oversubscribed
  • Strong support from existing key stakeholders:
    • Existing largest strategic investor, Tim Roberts subscribed for ~$4.4M
    • Project financing debt provider, Taurus subscribed for ~$3.8M
    • Directors subscribed for ~$0.6M
  • Galena to use placement proceeds to provide Abra a funding buffer during the critical initial commissioning and ramp-up stages of the project
  • Abra remains on-target for Q1 2023 production and for total Project capital expenditure to be on budget as per regular monthly updates
Managing Director, Tony James commented, “With first concentrate production coming in early 2023, we felt it critical to ensure our Abra Project has an adequate funding buffer to deal with any unforeseen circumstances during the commissioning and 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.”

The Placement was significantly oversubscribed and well supported mainly by existing stakeholders. The Company’s largest shareholder and strategic investor Mr Timothy Andrew Roberts, subscribed for 35,318,665 Placement Shares for ~A$4.41 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 30,007,862 Placement Shares for ~A$3,75 million (see Galena ASX announcements of 12 November 2020 and 15 June 2021 for more information on the Taurus Debt Facilities).

The Company’s Directors subscribed for 4,880,000 Placement shares for ~A$0.61 million, subject to shareholder approval.

Proceeds from the Placement (net of expenses) will be used to provide Abra Mining Pty. Ltd. (“AMPL”, the Abra Project joint-venture entity) a temporary unsecured reserve facility (“URF”). The URF will be $30 million, contributed $18 million by Galena and $12 million by the Company’s joint-venture partner Toho Zinc Co., Ltd. (“Toho Zinc”). The URF will be made available during the critical commissioning and initial ramp-up stages of the Abra Base Metals Mine (“Abra” or the “Project”), up until the Project Completion tests are satisfied under the Taurus Debt Facilities (anticipated to be 2H CY2023). Its purpose will be to provide a working capital and cost buffer for AMPL to draw in the event of unforeseen circumstances and costs such as weather-related road or port closures or other events. Any drawn amounts will become unsecured shareholder loans to AMPL whilst undrawn amounts will be returned to each of Galena and Toho in their respective 60:40 share.

Euroz Hartleys Limited and Petra Capital Pty Ltd acted as Joint Lead Managers and Joint Bookrunners to the Placement and will receive 6.0% capital raising fees on funds raised.

FURTHER PLACEMENT DETAILS

71,400,000 of the shares issued under the Placement will fall within the Company’s 15% placement capacity under ASX Listing Rule 7.1, with settlement scheduled to occur on Tuesday, 2 August 2022. The remaining 64,600,000 shares to be issued under the Placement are subject to shareholder approval with the general meeting anticipated to be held mid- September. All subscriptions by the Company’s Directors require shareholder approval and will be included in the second tranche of the Placement Shares for approval at the mid- September general meeting.

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


Click here for the full ASX Release

This article includes content from GALENA MINING LTD., licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

G1A:AU
The Conversation (0)
Sort by
Galena Mining

Abra Construction At 97% Complete – First Ore Stockpiled For January Processing

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine (“Abra” or the “Project”) has reached 97% complete as of 30 November 2022. Processing plant commissioning is progressing quickly with practical completion now expected in December 2022. Ore currently being mined from underground is being stockpiled in readiness for processing to begin in January 2023. Concentrate production will commence January 2023.

Keep reading...Show less
Galena Mining

Abra Construction At 92% Complete – Reaches First Ore Underground

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine (“Abra” or the “Project”) has reached 92% complete as of 31 October 2022. Underground mine has reached the first ore (see ASX announcement 14 November 2022) and plant commissioning continues in several key areas with the project focussed on achieving first concentrate production in Q1 2023.
Keep reading...Show less
Galena Mining

Abra Mine Reaches Ore

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the underground development at its Abra Base Metals Mine (“Abra” or the “Project”) has reached the Abra orebody. Commissioning has commenced in several key areas of the processing facility and the Power Station (Pacific Energy) completed full integration of the hybrid gas/solar/battery energy storage system (BESS) power station on 10 November. The project remains on track for first concentrate production in Q1 2023.
Keep reading...Show less
Galena Mining

Galena Mining Activities Report For Quarter Ended 30 September 2022

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ended 30 September 2022 (the “Quarter”), primarily focused on construction of its 60%- owned Abra Base Metals Mine (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.

Keep reading...Show less
  Unico Silver Limited

Cerro Leon drill results

Up to 3134gpt Silver at Chala, and new discoveries building at the Archen and CSS prospects.

Unico Silver Limited (“USL” or the “Company”) is pleased to announce further assay results from ongoing drilling at the Cerro Leon project, located in the Santa Cruz province of Argentina. The current drill program at Cerro Leon commenced October 2024 and is anticipated to continue through to the end of Q1 2025.

Keep reading...Show less

First Majestic Completes Acquisition of Gatos Silver

First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") and Gatos Silver, Inc. (NYSE: GATO) (TSX: GATO) ("Gatos Silver") are pleased to announce the completion of the acquisition of Gatos Silver by First Majestic (the "Transaction") pursuant to the agreement and plan of merger (the "Merger Agreement") previously announced in the joint news release of First Majestic and Gatos Silver dated September 5, 2024.

On Tuesday, January 14, 2025, both First Majestic and Gatos Silver announced that they received all necessary shareholder approvals at the respective special meetings of each company's shareholders. Approximately 98.44% of the votes cast at the special meeting of First Majestic's shareholders were voted in favour and approximately 99.23% of the votes cast at the special meeting of Gatos Silver's stockholders were voted in favour.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

MAG Announces Retirement of Michael Curlook

MAG Silver Corp. (TSX NYSE American: MAG) ("MAG" or "MAG Silver" or "Company") announces the retirement of Michael Curlook after twelve years of outstanding service to the Company.

Michael has been an integral part of MAG's Investor Relations team, playing a pivotal role in shaping the Company's communications strategy and fostering strong relationships with investors and stakeholders. During his extensive tenure, Michael played a key role in transitioning the Company's messaging from its early-stage exploration focus through development milestones and into its current phase of operations. His ability to adapt communication strategies to align with MAG's growth trajectory has been instrumental in building trust and credibility with the market. Michael's commitment, expertise, and passion have contributed significantly to MAG's success.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Pan American Silver achieves 2024 production guidance and enters 2025 with a record cash balance

All amounts are expressed in US$ unless otherwise indicated. Results are preliminary and unaudited and could be adjusted based on final results.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

SilverCrest Provides 2024 Fourth Quarter and Annual Operational Results

2024 Record Sal   es Exceed Guidance and Drive Record Annual Revenue

TSX: SIL | NYSE American: SILV

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Endeavour Silver Provides 2025 Guidance for Guanaceví and Bolañitos; Production expected at 4.5 - 5.2 Million oz Silver and 30,500 - 34,000 oz Gold for 7.0 - 7.9 Million oz Silver Equivalent

Endeavour Silver Corp. ("Endeavour" or the "Company") (NYSE: EXK; TSX: EDR) announces its consolidated production and cost guidance for Guanaceví and Bolañitos, and its capital and exploration budgets for 2025. The Company will provide 2025 production and cost guidance for the Terronera project in a separate news release once commissioning is complete. All dollar amounts are in US dollars (US$).

2025 Production and Cost Guidance Highlights

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×