AFR: WA explorer Galena Mining in cash call

West Australian explorer Galena Mining was asking investors for $15 million on Monday morning for work at its lead, silver project Abra.

The placement was priced at 12.5¢ a share, a 7.4 per cent discount to the last close split into two tranches, of which $8.9 million was under its existing placement capacity.

Potential investors were told Galena would use the proceeds primarily to fun its share of the intended temporary unsecured reserve facility that would provide funding until Abra completion tests are met under the debt facilities agreement it has with Taurus Fund Management for $36.8 million.

The completion tests were expected by the second half of 2023 calendar year. Galena originally planned to be producing by 2021.

The term sheet said Galena’s largest shareholder Warburton Group Pty Ltd (18.2 per cent of the register) would tip in $4 million while its lender, Taurus, would subscribe for $3.65 million.

Abra is a 40 per cent joint venture with Japanese company Toho Zinc Co. Galena has previously advised of a 34.5 million tonne mineral resources at 7.2 per cent lead and 16 grams per tonne silver. The construction was 75 per cent complete as of mid July, according to the term sheet.

Euroz Hartley and Petra Capital were the joint lead managers and called for bids by 4pm Monday. Galena had $64.3 million market capitalisation, $48.2 million cash and US$85 million debt drawn from a US$110 million facility.

Source: The Australian Financial Review