Ora Banda secures loan from Hawke's Point for Riverina exploration

Australian mining company, Ora Banda Mining Ltd has announced that its largest shareholder, Hawke’s Point Holdings L.P. has offered $12.74 mn in funding, comprising of an unsecured loan and net smelter return (NSR) royalty.
As per the media report, Hawke’s Point has agreed to provide Ora Banda with an unsecured loan of $11 mn loan. The proceeds from the loan are intended to be used by the company to fund resource development and exploration at Riverina, capital expenditure and general working capital.
There are no conditions to drawdown of the loan, and the company expects to receive the proceeds in December 2022. The company has also entered into an agreement with Hawke’s Point pursuant to which certain of the company’s wholly owned subsidiaries agree to pay a NSR royalty on gold doré or bullion produced and sold from the company’s existing mining tenements on and from 31 December 2023 in return for AUS$1.74 mn from Hawke’s Point (royalty). This royalty is payable at 0.9% NSR and is capped at a total of 900 000 oz of pure gold over 15 years. Hawke’s Point may request the grant of security by the relevant subsidiary with respect to the royalty.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished