Galena Mining's $12 million placement testament to strength of Abra Base Metals Project

Galena Mining Ltd (ASX:G1A) has accepted binding commitments for a placement of 57.15 million shares at an issue price of 21 cents per share to raise $12 million before costs. The placement was significantly oversubscribed and well supported by existing and new investors including high-quality institutional investors. These funds will provide the company with a strong financial platform on which to complete the Abra Base Metals Project debt financing process and help it to maintain a strong working capital position. Funds will also be allocated to undertake optimisation drilling at the project ahead of underground mining and to drill the newly interpreted target for gold and copper mineralisation for the first time. Testament to the project's appeal Managing director Alex Molyneux said the strong institutional support was a testament to Abra’s appeal as a low-risk, high-return base and precious metals project. “We look forward to progressing optimisation works in parallel with the debt financing process before mining commences.” Placement details Galena’s largest holder and strategic investor Tim Roberts subscribed for 11.15 million shares to maintain his pro-rata shareholding at around 20%. Hartleys Limited and Petra Capital Pty Ltd acted as joint lead managers and joint bookrunners to the placement. Shares issued will fall within the company’s 15% placement capacity under ASX Listing Rule 7.1 and additional 10% placement capacity under ASX Listing Rule 7.1A. A total of 38,408,303 shares will be issued pursuant to Listing Rule 7.1 and 18,741,697 shares pursuant to Listing Rule 7.1A. Settlement is scheduled to occur on Thursday, July 16, 2020.