Equity deal for Galena’s Abra project in WA

Galena Mining has secured the equity needed to develop its globally significant Abra Base Metals Project in WA’s Gascoyne region through a $90 million agreement with Japan’s Toho Zinc Co Ltd.

A Terms Sheet executed with Toho will result in it gaining 40% ownership of Galena’s wholly-owned subsidiary, Abra Mining, which owns the project

The agreement involves the international zinc and lead smelting company investing $90 million in three tranches.

Galena’s managing director Alex Molyneux said: “This is a great transaction that provides the equity required to develop Abra, recognising the strategic value of the project. Furthermore, Toho is a key player in the global lead and zinc industry and an experienced miner, so we look forward to the benefits of a true partnership in the development of Abra.”

Galena continues to target the start of construction at Abra this year, with initial production in 2021 and the first full-year of steady-state commercial production in 2022.