The associated parties more than doubled their stake in the company by acquiring 30.4 million shares to add to their pre-existing 25 million shares.
Galena’s managing director Alex Molyneux said: “It’s very pleasing to see a strategic investor continue to see such solid value in our shares and want to grow their exposure to Galena as we embark on the construction phase of our Abra Base Metals Project.”
Feasibility study supports valuable base metals mine
In July 2019, Galena completed a feasibility study on its Abra Base Metals Project in Western Australia valuing a 16-year lead-silver mine pre-tax at $553 million.
The study estimated Abra would produce 95,000 tonnes of lead and 805,000 ounces of silver per year for 1.24 million tonnes of lead and 10.6 million ounces of silver over the life-of-mine.
Capex estimates total $169.6 million with a construction period of 15 months and the lead C1 direct cash cost of production is forecast to be US$0.44 per pound.