Eastern Goldfields Limited (ASX:EGS) has received binding commitments to raise a total of $30 million, comprising $22.4 million in convertible notes and the remainder from a non-renounceable entitlement offer.
The company, which is changing its name to Ora Banda Mining Limited, is pleased with the response to the capital raising.
Institutional and high net worth investors have participated while the $7.6 million 1-for-1 entitlement offer was fiully subscribed.
“Pleased to be on the home straight”
Ora Banda managing director David Quinlivan said: “We are very pleased to be on the home straight in respect of this transaction.
“The recapitalisation of the company has been a very significant endeavour involving six months of hard work by a group of key stakeholders.
“The capital raising is the last phase of the transaction and the successful receipt of commitments for $30 million demonstrates that the market supports our vision for the company.”
Quinlivan added: “We are glad to have clearly exceeded the minimum raising pursuant to the DOCA of $22 million and are looking forward to executing on our project development strategy and unlocking the significant value of the Davyhurst project.”