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Ora Banda secures funding to advance Riverina Underground

Published by , Editorial Assistant
Global Mining Review,

Ora Banda Mining Ltd has announced that it has executed documentation with its largest shareholder, Hawke’s Point Holdings L.P. for US$12.74 million in funding, comprising of an unsecured loan and net smelter return (NSR) royalty.

Hawke’s Point has agreed to provide the company with an unsecured loan of US$11 million (loan). The proceeds from the loan are intended to be used by the company to fund resource development and exploration at Riverina, capital expenditure and general working capital.

There are no conditions to drawdown of the loan, and the company expects to receive the proceeds on or about 23 December 2022.

The company has also entered into an agreement with Hawke’s Point pursuant to which certain of the company’s wholly-owned subsidiaries agree to pay a NSR royalty on gold doré or bullion produced and sold from the company’s existing mining tenements on and from 31 December 2023 in return for AUS$1.74 million from Hawke’s Point (royalty).

This royalty is payable at 0.9% NSR and is capped at a total of 900 000 oz of pure gold over 15 years. Hawke’s Point may request the grant of security by the relevant subsidiary with respect to the royalty. The grant of any such security, if requested, will be subject to the company obtaining any required shareholder approvals under ASX Listing Rule 10.1 (or a waiver from ASX with respect to that rule) and/or Chapter 2E of the Corporations Act 2001.

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