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Galena Mining Ltd

Galena Mining managing director builds on holding through on-market purchase

Alexander Molyneux has acquired a further 70,000 shares, taking his overall holding in G1A to 3.57 million shares.

Galena Mining Ltd - Galena Mining managing director builds on holding through on-market purchase
The company is developing the Abra Base Metals Project in Western Australia

Galena Mining Ltd (ASX:G1A) managing director Alexander Molyneux has demonstrated his confidence in the company’s lead and silver strategy by acquiring further shares on-market.

On November 14 Molyneux acquired 70,000 shares in a transaction valued at $21,000.

He now holds 3.57 million shares in the company which has a market cap of approximately $113.17 million.

Securities in the company that is developing the Abra Base Metals Project in Western Australia, which will produce high-value, high-grade lead-silver concentrates, are trading at 30 cents.

Infrastructure development

At the end of the September quarter, Abra was well-positioned with about $33.5 million in cash.

After commencing surface infrastructure construction at Abra, Galena continues to target initial production in 2021 and the first full-year of steady-state commercial production in 2022.

Upcoming value-adding Abra and corporate milestone workstreams include:

  • Conclusion of project financing debt;
  • Completion of construction of Abra’s permanent village and other surface infrastructure facilities;
  • Commencement of the box-cut;
  • Mobilisation of the underground mining contractor; and
  • Full construction decision and execution of plant EPC contract.

Offtake with IXM

Last month the company entered an offtake agreement with tier-one international trading firm IXM S.A. for the supply of high-grade lead-silver concentrates from Abra.

Under the IXM offtake, Galena agreed to sell IXM 65,000 tonnes per year of concentrates for 10 years from the beginning of production.

This agreed volume accounts for 60% of Abra production that has not been earmarked for offtake to Toho Zinc Co, Galena’s JV partner in AMPL.

The premium in favour of Galena under the IXM offtake will generate annual pre-tax cash flow for the company once Abra is in steady-state production.

This represents the high-quality nature of Abra’s concentrate, which is anticipated to be the world’s highest-grade lead concentrate commercially available.

Resource upgrade

Also, during October Galena upgraded the JORC resource estimate for its flagship Abra project.

The new resource stands at 41.1 million tonnes grading 7.3% lead and 18 g/t silver, which represents an 8% increase in contained lead and a 10% increase in contained silver over the December 2018 estimate.

A larger portion of the resource has been upgraded into the higher certainty indicated category from the inferred category.

Quick facts: Galena Mining Ltd

Price: 0.27 AUD

Market: ASX
Market Cap: $104.08 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