Ora Banda Mining raising $30 million to advance Sand King underground mine development

Ora Banda Mining is raising $30 million to progress development of a second underground mine at its Davyhurst gold project north-west of Kalgoorlie-Boulder. Ora Banda told the ASX last Friday the share placement would allow it to rapidly advance Sand King towards a final investment decision after recent outstanding exploration results. The company said it had received firm support for the placement of 136,363,637 new ordinary shares at 22¢ a share, a price which was a 9.4 per cent discount to the 10-day volume weighted average price. Ora Banda managing director Luke Creagh said the company was pivoting from the current low-grade open-pit mill feed to high-grade underground mill feed as its primary source of ore. “In addition, the outstanding recent drilling results from the phase one program at Sand King positions it as a potential second underground mine in the future, which could materially increase production,” he said. The company also said the continued ramp-up at the Riverina underground mine remained on schedule. Ora Banda last month said it was aiming to have Riverina in commercial production in the next quarter, with the first stoping ore scheduled for this month. Riverina is the centrepiece of Ora Banda’s drive to become a 100,000-ounce-per-annum producer as it continues on its reset journey from past years of underperformance. Ora Banda last July set its 2023-24 guidance at 67,000oz-73,000oz at a 25 per cent reduced all-in-sustaining cost of $2200/oz-$2400/oz. The company produced just 48,023oz in the 2022-23 financial year due to low crushing circuit availability and a bearing failure.