Ora Banda Mining Ltd (ASX:OBM) (FRA:M6N) has awarded the engineering, procurement and construction (EPC) contract associated with the restart of the Davyhurst Gold Processing Plant in Western Australia to GR Engineering Services Limited (ASX:GNG).
The contract is worth A$10.8 million and will be undertaken on a fixed price basis which includes a provisional sum component.
GR Engineering managing director Geoff Jones said: “GR Engineering is pleased to have been awarded the EPC contract for the Davyhurst Restart Project.
“We are excited to be working with Ora Banda’s management team and look forward to Ora Banda becoming Australia’s newest gold producer.”
Scope of works
The scope of works includes the refurbishment, optimisation and recommissioning of the existing 1.2 million tonnes per annum Davyhurst Gold Processing Plant, borefields and associated infrastructure.
Work will start immediately and is expected to be completed in the first quarter of 2021 when gold production is also forecast.
A$55 million capital raising
To support the restart plan Ora Banda has completed a placement and institutional entitlement offer bookbuild for $51.7 million and is undertaking an underwritten retail entitlement offer for another A$3.3 million.
The company received firm commitments of around A$40 million for its placement to institutional investors and approximately A$11.7 million for the institutional component of its 1 for 9 accelerated non-renounceable pro-rata entitlement offer of new fully paid ordinary shares.
This placement and institutional entitlement offer will raise A$51.7 million at A$0.23 per new share on completion.
The retail component of the entitlement offer will raise a further A$3.3 million, and the placement and entitlement offer will collectively raise A$55 million (before costs).