Galena Mining raises $20m

Galena Mining has raised $20 million from investors after wet weather conditions and technical issues caused delays in the ramp-up period for its Abra base metals mine.

The Abra project, located in the Gascoyne region between Newman and Meekatharra, is a joint-venture project between Abra Mining and Galena Mining, with the latter owning 60 per cent.

Shares in ASX-listed Galena Mining were on offer to investors at 15 cents per share, a 36.6 per cent discount to the 10-day volume-weighted average price of 23.7 cents on April 6.

The West Perth-based company said the funds raised would be used to bolster the ramp-up period of Abra mine until project completion scheduled for the second half of 2023.

Galena said its largest shareholder Warburton Group supported the placement and subscribed for 23.8 million shares valued at $3.6 million.

Taurus Mining Finance Fund also participated in the placement, subscribing for 6.66 million shares valued at $1 million.

Galena directors subscribed for $400,000 in shares.

Galena managing director Tony James said the need for additional capital funding for the project was disappointing.

“The revised geology information affecting the ore that was hard against the Abra fault has been a short-term technical change we did not expect,” he said.

“That ore has been replaced by lower-grade ore and we will continue our ramp-up to steady-state production as quickly as possible moving away from the upper northern margin of the orebody.”

Mr James said the rain in March slowed down work at the mine due to the main access roads being compromised by the weather.

Euroz Hartleys and Petra Capital acted as joint managers and bookrunners to the placement.

Galena Mining shares were down 35 per cent to trade at 15 cents.