Diatreme Resources (ASX:DRX) - CEO, Neil McIntyre
CEO, Neil McIntyre
Source: Diatreme Resources / Twitter
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  • Diatreme Resources (DRX) receives investor backing to undertake a $10 million placement
  • Roughly 435 million fully-paid ordinary shares will now be issued to strategic, professional and sophisticated investors at 2.3 cents
  • Once received, Diatreme will put the funds towards its flagship Galalar Silica Sand Project in North Queensland
  • Specifically, the company will deliver preliminary and definitive feasibility studies and advance exploration and permitting approvals
  • Diatreme is down 1.96 per cent on the market with shares trading at 2.5 cents at 12:38 pm AEST

Diatreme Resources (DRX) has received investor backing to undertake a $10 million placement.

The company entered a trading halt on September 2 but did not disclose how much it intended to raise or what it would use the funds for.

Roughly 435 million fully-paid ordinary shares will now be issued to strategic, professional and sophisticated investors at 2.3 cents.

This price represents an 11.5 per cent discount to Diatreme’s closing price of 2.6 cents on September 1 and a 16 per cent discount to the 15-day volume-weighted average price of 2.7 cents.

Ilwella, Diatreme’s largest shareholder, has committed to subscribe for $3.5 million.

Once received, Diatreme will put the funds towards its flagship Galalar Silica Sand Project in North Queensland.

Specifically, the company will deliver preliminary and definitive feasibility studies and advance exploration and permitting approvals.

CEO Neil McIntyre is pleased with the support received and stated what the funds will be used for.

“We continue to advance the Galalar project at a rapid pace in this world-class silica province, with previous results showing our ability to produce premium-grade silica for fast-growing Asian markets,” Mr McIntyre said.

“Diatreme is advancing rapidly now and we look forward to achieving our goal of becoming a significant near-term, low cost and premium silica producer supplying the Asia-Pacific’s solar energy boom.”

Diatreme was down 1.96 per cent on the market with shares trading at 2.5 cents at 12:38 pm AEST.

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