The company has also commenced initial production development drilling at its Abra Base Metals Project in Western Australia’s Gascoyne region.
Galena managing director Alex Molyneux said: “We welcome Kingfisher Capital as a new strategic investor for Galena as further confirmation of the quality of Abra as a leading Australian base metals project.
“I’m also pleased about being able to move forward at this time with the initial project development drilling because it’s important to be in a cycle of de-risking as we move forward with Abra.”
$90 million equity from Toho Zinc
Galena recently signed a term sheet with Japan’s Toho Zinc Co Ltd (TYO:5707) for a $90 million equity investment which will result in Toho gaining 40% ownership of Galena’s wholly-owned subsidiary, Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project.
Toho has now received approval from the Australian Government Foreign Investment Review Board (FIRB) for the transaction.
Kingfisher Capital investment
The first tranche of the $10 million Kingfisher Capital transaction is expected to close imminently whilst the second tranche is conditional on the issue of the initial tranche of shares in AMPL pursuant to the Toho transaction.
Proceeds from the Kingfisher Capital investment will be used in combination with the initial tranches from the Toho transaction to accelerate pre-development works at Abra.
Initial project development drilling at Abra
Galena has commenced an initial project development drilling program at Abra, which the company considers a major advancement of the project.
The drilling will complete decline positioning, water bores and additional infill holes associated with early production horizons.
Under the program, Galena anticipates drilling more than 15,000 metres of diamond core drill holes adding about 25% new data to the project’s total drilling database.
The program will aim to increase confidence within areas of the Abra resource already categorised as indicated and inferred.
In addition to the main purpose, a sub-set of drill holes have been planned for the purposes of overall resource development and near-project exploration.