viewGalena Mining Ltd

Galena Mining buys out royalty over Abra Project

Galena completed a DFS for Abra in July 2019 valuing a 16-year lead-silver mine at $553 million pre-tax.

Galena Mining Ltd - Galena Mining buys out royalty over Abra Project
Construction of site infrastructure commenced in October 2019

Galena Mining Ltd (ASX:G1A) has terminated the 1.125% historical vendor royalty on its flagship Abra Base Metals Project in Western Australia.

The consideration paid for the royalty termination was $1.6 million in cash plus 7 million shares in Galena.

Using the July feasibility study metrics, terminating the royalty is expected to save over $40 million over the life of mine, much higher than the estimated $3.5 million cash and shares payment.

This is yet another strategic initiative implemented by Galena to add value to the Abra Project.

The removal of this 1.125% royalty lowers total non-government royalties on Abra to 2.375%.

Recent board appointment

In late November 2019, Galena appointed mining and chemical engineer Stewart Howe as a non-executive director.

Howe has considerable senior management experience in the global lead-zinc industry.

His skills  will be employed as the Abra Base Metals Project moves through the development phase and into production.

Quick facts: Galena Mining Ltd

Price: 0.185 AUD

Market: ASX
Market Cap: $71.33 m

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Full interview: Galena Mining ramps up surface infrastructure development at...

Galena Mining Ltd (ASX:G1A) managing director Alex Molyneux updates Proactive on increased surface infrastructure development activities at the Abra Base Metals Project in the Gascoyne region of WA. This forms part of a $15 million development works program. The work is being done prior to...

on 10/10/19

2 min read