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- West Australian gold explorers Dacian Gold (DCN) is looking to raise $45 million to further develop its WA projects into production
- The raise will be undertaken in a $40 million placement and a $5 million share purchase plan (SPP)
- Under the placement, Dacian will issue 142.9 million new shares at 28 cents each
- The SPP will allow existing shareholders to purchase further shares at the same price as the placement
- Funds raised will be used to speed up DCN’s three-pillar growth strategy and build on the robust foundation established during the 2021 financial year
- Company shares are currently in a trading halt and last traded at 30.5 cents per share
Dacian Gold (DCN) is aiming to raise $45 million in an equity raise to further develop its West Australian projects into production.
The company is currently exploring two areas, Mt Morgans and Redcliff, both near the Lenora- Laverton area.
The raise will be undertaken in a $40 million placement and a $5 million share purchase plan (SPP).
Placement
Under the placement, Dacian will issue 142.9 million new shares through two tranches.
The shares will be issued at 28 cents each, a 8.2 per cent discount to the last traded share price.
Canaccord Genuity is acting as lead manager, underwriter and bookrunner to
the placement.
Share Purchase Plan
Existing eligible shareholders will be invited to participate in the SPP.
Shareholders will be able to purchase up to $30,000 worth of shares at the same price as the placement.
Funds
Funds raised will be used to speed up its three pillar growth strategy and build on the robust foundation established during the 2021 financial year.
Dacian is planning a 300,000-metre drilling program at the Mt Morgans and Redcliffe tenement packages.
The company is advancing the Redcliffe Project into production with the Hub, GTS and Nambi open-pit mines.
Funds will also be used to re-start the Greater Westralia underground mines, Beresford, Allanson and Craic, providing high-grade ore for Mt Morgans.
Managing Director Leigh Junk said: “A busy FY2021 where we established our platform for growth through the acquisition of the Redcliffe project and completion of the technical evaluation of Greater Westralia, has culminated in the opportunity to accelerate multiple mines into production simultaneously.
“In combination with our extensive targeting work across Mt Morgans and Redcliffe to identify new base load discoveries, we have undertaken this capital raise to both aggressively pursue these exploration targets and advance the development of these mines.”
Company shares are currently in a trading halt and last traded at 30.5 cents per share.
