G1A - Galena Mining

[greggles]

Couldn't find a thread on Galena Mining Limited (G1A), so here's a quick thread starter for those interested.

Galena Mining Limited floated on the ASX in September 2017 and owns 100% of the Abra base metals deposit located in the Gascoyne Region of Western Australia. The Abra deposit was discovered in 1981 and remains one of the biggest undeveloped lead deposit in the World. Abra is within a granted mining lease.

Galena completed a successful drilling campaign in Q4 2017 with high grade mineralisation intersected in every one of the 12 holes. These results have allowed the estimation of a new 2012 JORC compliant Resource in March 2018 of:

This is 11.2Mt (Indicated and Inferred) @ 10.1% lead and 28g/t silver
within 36.6Mt (Indicated and Inferred) @ 7.3% lead and 18g/t silver

https://www.galenamining.com.au

 

[Parse]

Not many posts on this company/stock here, however I believe Galena are set for a big 2021.

As at November, 39 diamond holes have been drilled with aims to infill the lead-silver ore body, undertake copper-gold exploration, and complete mine plan optimisation. Of the new results, grades peaked at 24.8 per cent lead and 157g/t silver. A fourth drill rig was added in mid-November to increase the drilling capacity and speed-up work.

Galena Is apparently fully funded (I've heard this before..) for its high-grade Abra lead underground mine in WA.

As at the end of the Last Quarter, the Company, together with its subsidiaries had approximately A$20.2 million in cash comprised of cash at bank and term deposit balances.
To date, approximately A$23 million has been spent on Project development at Abra to complete 12% of Project works. Abra site is prepared for the deployment of key contractors for the construction of the plant and ancillary infrastructure, and deployment of the underground mining contractor. In addition, key agreements for such services are awarded or in a near-to-final state, further advancing on the completion of permitting, native title arrangements and offtake achieved in 2019. Galena also has a strong, flexible and supportive partner for the Project in Toho. Since Toho’s overall A$90 million investment was agreed in January 2019 the investment received to date has been used to prepare the Abra site and advance early project works. Toho is the leading producer of lead in Japan and has entered into a binding offtake agreement to purchase 40% of Abra’s production for an initial period of 10-years from the commencement of production. Galena is now working to conclude the recently announced Taurus Funds Management project financing debt facilities including meeting the conditions to drawdown. Once the facilities are concluded, the Company expects to move to the final procurement and construction phase at Abra.

 

[Dona Ferentes]

Galena Mining (ASX: G1A) has raised another $17 million to help give it a financial buffer while it closes the development of its rich Abra lead-silver mine in Western Australia. Galena placed 136 million new shares at an issue price of 12.5 cents a share to raise the money

Galena CEO Tony James said with first concentrate production coming in early 2023, the company felt it critical to ensure the Abra project had an adequate funding buffer to deal with any unforeseen circumstances during the ramp-up phase of the mine.

“It’s very pleasing to see the ongoing strong support from our key stakeholders who continue to support us in the development of our world-class lead-silver mine,” he said.

Galena said the the placement “was significantly oversubscribed and well supported mainly by existing stakeholders. The company’s largest shareholder and strategic investor Timothy Andrew Roberts subscribed for 35,318,665 placement shares for about $4.41m.”

Taurus Mining Finance Fund, the provider of the Taurus debt facilities to the Abra mine and a key stakeholder in the ongoing success of the Project, subscribed for 30,007,862 placement shares for about $3.75m.

Proceeds will be used to provide Abra a temporary unsecured reserve facility, which will be made available during the critical commissioning of Abra, up until the project completion tests are satisfied under the Taurus facility.

 

[Dona Ferentes]

Galena Is apparently fully funded (I've heard this before..) for its high-grade Abra lead underground mine in WA.

Now there is funding (some) but the conditionality / generosity of the source makes things look a bit unequal

A temporary unsecured reserve facility, which will be made available during the critical commissioning of Abra, up until the project completion tests are satisfied under the Taurus facility.

One mis-step and Toho talks to Taurus

 

[Australis]

 

[finicky]

Just a chart. Haven't followed the company's progress.

G1A making a good show of possibly making a significant low with some high volume positive bars and the shorter ma looking like it wants to cross over. August's incomplete monthly candle is looking bullish engulfing or bullish kicking so far (see thumb)

Not Held

WEEKLY

 

[finicky]

^^^
A thumb up eh? I know sarcasm when I see it

 

[frugal.rock]

^^^
A thumb up eh? I know sarcasm when I see it

The things we don't say....

The thumb up was really just to say, I think you had the right idea, just time shifted, and to bring your attention back to the stock, which by all accounts, mining is ramping up well.
Next quarterly should be good etc

A spade is a spade Fin, I've got no bone to pick with you, and I don't beat about the bush.
Well done on your cup winnings.

 

[finicky]

I was just kidding @frugal.rock.

I lost a mate once when I wrote him a letter elaborating as to how a back issue that manifested when we were previously on a camping out/piss-up break at Maroochydore had turned out to be an L3-4 aggressive tumour and that immediate surgery was required which was totally successful, except that I was now a paraplegic. However I had psychologically adjusted except that I now tended to 'find myself' on pr0n sites featuring dwarves and amputees. I told him I wouldn't be a drag next time he came down and that we could play ping pong at a customised table if he consented to use a wheel-chair too. It was a hoax in revenge for his utterly callous reaction to my crippling back condition on the camping trip and his insistence on always being upbeat. I never expected him to believe the story given the absurdities contained therein. Amazingly, he swallowed it hook line and sinker and when he eventually phoned before his next trip up sounded disappointed when I had to let him in on the hoax and never contacted me again! rofl.

 

[Dona Ferentes]

small WA lead and silver miner, Galena (ASX:G1A), had a trading halt on Tuesday turn into a suspension until the end of January, on Thursday.

On Tuesday, Galena requested a trading halt until Thursday to facilitate a review of the company's mining operations at the Abra mine in the WA Kimberley region. This request came shortly after a brief update on mining at Abra in the December quarter, revealing mixed fortunes. While there was a small improvement in production levels, cost pressures and seemingly unreliable ore grades posed challenges.

In the update, Galena cited the trading halt as "pending an announcement regarding a strategic review of operations." The company reported record highs in several production areas, but it also acknowledged the need to align the capital structure of its operating company, Abra Mining P/L (AMPL), with Abra's expected performance.

Galena's CEO, Tony James, highlighted the challenges faced by the company, emphasizing the need for improved mining performance and ore grades in 2024. He mentioned ongoing technical evaluations that would shape the 2024 outlook and discussions with key stakeholders.

On Thursday, the trading halt request evolved into a suspension, granted by the ASX. Galena requested a voluntary suspension until January 31, 2024, or until the company releases an announcement regarding the strategic review of operations. It appears that Galena faces an uncertain future, with negotiations with funders and shareholders likely necessary to secure additional capital.

 

[Dona Ferentes]

and it gets worse

Close to 150 workers at Western Australia’s Abra mine face an uncertain future after administrators were called in to sell or recapitalise its parent company.

Administrators KordaMentha will seek new owners for ASIC-registered company Abra Mining, which primarily produces lead and silver in WA’s Gascoyne region but has also been touted for deeper copper and gold resources.

Abra is 60 per cent owned by ASX-listed Galena Mining, which had just $3.8 million of cash on hand at December 31 and now faces an uncertain future of its own.

The other 40 per cent is owned by Japanese company Toho Zinc, which spent $90 million buying its stake in the mine in 2019.

Abra has been struggling under a heavy debt load after borrowing $US110 million ($167 million) in 2020 from specialist resources industry lender Taurus to fund development of the mine.

 

[System]

G1A delisted from the ASX on 17/03/25.