Ora Banda Mining Ltd. received firm commitments for an A$18.5 million placement to accelerate a gold resource and reserve definition program as well as a regional exploration program in Western Australia and to fund early-stage processing plant works.

The company will issue 100 million shares under the placement at an issue price of 18.5 Australian cents apiece, according to an Aug. 16 news release, with closing scheduled for Aug. 23.

Managing Director David Quinlivan said the funding will enable the early completion of a definitive feasibility study for its Davyhurst gold project in Western Australia, as well as ensure the project quickly moves to production.

Major shareholder Hawke's Point Holdings I Ltd. conditionally agreed to maintain its stake in the company by subscribing for about 42.4 million shares.

Ora Banda recently slashed the capital cost estimate for remedial work at the Davyhurst processing plant by 43% to A$8.5 million.