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G1A - GALENA MINING LIMITED


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Galena Mining Limited (G1A) floated on the ASX in September 2017 and owns 100% of the Abra base metals deposit located in the Gascoyne Region of Western Australia. The Abra deposit was discovered in 1981 and remains one of the biggest undeveloped lead deposit in the World. Abra is within a granted mining lease.

Galena completed a successful drilling campaign in Q4 2017 with high grade mineralisation intersected in every one of the 12 holes. These results have allowed the estimation of a new 2012 JORC compliant Resource in March 2018 of:

This is 11.2Mt (Indicated and Inferred) @ 10.1% lead and 28g/t silver
within 36.6Mt (Indicated and Inferred) @ 7.3% lead and 18g/t silver

Towards the end of 2020, Galena , together with its subsidiaries had approximately A$20.2 million in cash comprised of cash at bank and term deposit balances. Approximately A$23 million has been spent on Project development at Abra to complete 12% of Project works. Abra site was prepared for the deployment of key contractors for the construction of the plant and ancillary infrastructure, and deployment of the underground mining contractor. In addition, key agreements for such services are awarded or in a near to final state, further advancing on the completion of permitting, native title arrangements and offtake achieved in 2019.

Galena also has a strong, flexible and supportive partner for the Project in Toho. Since Toho’s overall A$90 million investment was agreed in January 2019 the investment received to date has been used to prepare the Abra site and advance early project works. Toho is the leading producer of lead in Japan and has entered into a binding offtake agreement to purchase 40% of Abra’s production for an initial period of 10 years from the commencement of production. Galena is now working to conclude the recently announced Taurus Funds Management project financing debt facilities including meeting the conditions to drawdown. Once the facilities are concluded, the Company expects to move to the final procurement and construction phase at Abra.

 

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Galena Mining (ASX: G1A) has raised another $17 million to help give it a financial buffer while it closes the development of its rich Abra lead silver mine in Western Australia.

Galena placed 136 million new shares at an issue price of 12.5 cents a share to raise the money

Galena CEO Tony James said with first concentrate production coming in early 2023, the company felt it critical to ensure the Abra project had an adequate funding buffer to deal with any unforeseen circumstances during the ramp-up phase of the mine.

Quote

It is 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, he said.

Galena said the the placement was significantly oversubscribed and well supported mainly by existing stakeholders. The company’s largest shareholder and strategic investor Timothy Andrew Roberts subscribed for 35,318,665 placement shares for about $4.41m.

Taurus Mining Finance Fund, the provider of the Taurus debt facilities to the Abra mine and a key stakeholder in the ongoing success of the Project, subscribed for 30,007,862 placement shares for about $3.75m.

Proceeds will be used to provide Abra a temporary unsecured reserve facility, which will be made available during the critical commissioning of Abra, up until the project completion tests are satisfied under the Taurus facility.

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