Galena Mining Ltd (ASX:G1A) has a new substantial shareholder in UBS Group AG and its related bodies corporate as it moves along the development path for the Abra Base Metals Project in WA.
UBS Securities Australia has made a series of transactions between December 19, 2018, and April 3, 2019, and now holds more than 17.99 million shares representing a 5.15% interest.
READ: Galena Mining Toho transaction gets due diligence tick
Last week, Galena advised that the confirmatory due diligence for its proposed transaction with Japan’s Toho Zinc Co Ltd (TYO:5707) had been completed.
Due diligence is a condition to the transaction which if completed will result in Toho investing $90 million for a 40% ownership of Galena’s wholly-owned subsidiary Abra Mining Pty Ltd (AMPL), which owns the project.
Transaction advances
With foreign investment approval also recently received, Galena said the only material outstanding conditions to the transaction were executing the required definitive documents and related internal approvals.
Galena agreed to extend the exclusivity period for the transaction by 12 days until April 12, 2019.
The company continues to anticipate the definitive documentation to be executed and the first payment to be made this month.
READ: Galena Mining secures $10 million investment from Kingfisher Capital
In March, the company executed a subscription agreement with Kingfisher Capital to invest $10 million into Galena in two tranches of $5 million each at 40 cents per share.
Production development drilling
Galena plans to release a definitive feasibility study (DFS) for the project in mid-2019 and is undertaking initial production development drilling.
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.
