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Galena Mining receives final $5 million payment from $10 million Kingfisher investment

The company has also finalised a $90 million transaction with Toho Zinc Co Ltd which will result in a 40% stake in the Abra Base Metals Project.

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Kingfisher has become a new substantial shareholder with 6.91% of Galena

Galena Mining Ltd (ASX:G1A) has received the second and final payment of $5 million from Kingfisher Capital Pte Ltd as part of a $10 million strategic investment transaction.

Accordingly, the company has issued Kingfisher 12.5 million shares at 40 cents per share together with 2.5 million options.

READ: Galena Mining secures $10 million investment from Kingfisher Capital

Half of these options have a strike price of 50 cents per share and the other half have a strike price of 60 cents, with an expiry of four years from the issuance date.

Kingfisher now holds a 6.91% stake in Galena, becoming a new substantial shareholder.

READ: Galena Mining and Toho Zinc executes definitive documentation for $90 million investment

Finalising the Kingfisher investment follows completion of the transaction with Toho Zinc Co Ltd to invest $90 million for a 40% joint venture investment in Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project in WA.

Closing formalities for the Toho transaction have now been completed and AMPL has issued new shares to CBH Western Australia Pty Ltd (CBHWA), a wholly-owned subsidiary of Toho.

AMPL is at present owned 8.89% by CBHWA and 91.11% by Galena.

The company has also received a $5 million inter-company loan repayment from AMPL.

Project development drilling

Galena is undertaking initial project development drilling 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.

READ: Galena Mining optimises PFS ahead of publishing DFS in mid-2019

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.

Quick facts: Galena Mining Ltd

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Galena Mining Ltd's (ASX:G1A) Alex Molyneux updates Proactive's Andrew Scott on debt financing discussions for its flagship Abra Project in Australia as well as outlining new gold and base metals drilling targets that've been identified. He says recent work has found gold mineralisation trends...

on 29/6/20

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