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Drilling at Galalar Project. Source: Diatreme Resources
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  • Diatreme Resources (DRX) has entered a trading halt relating to a capital raise
  • DRX is focused on bringing its Galalar Silica Sand Project into production by late 2022 to supply Asia’s solar photovoltaic (PV) and specialty glass market
  • DRX expects to complete a definitive feasibility study for the project next quarter, to be followed by mining lease and final environmental approvals
  • The trading halt will remain in place until Monday, September 6, at the latest, by which time the details of the capital raise would have been released
  • DRX’s shares last traded at 2.6 cents on September 1

Diatreme Resources (DRX) has entered a trading halt relating to a capital raise.

The trading halt will remain in place until Monday, September 6, at the latest, by which time the details of the capital raise would have been released.

At this stage, the company hasn’t indicated how much it plans to raise or where the funding will be used.

The company’s recent focus has been on its Galalar Silica Project in northern Queensland, which it’s developing into a high-quality silica sand producer for Asia’s fast-growing solar photovoltaic (PV) and specialty glass market.

Last month, Diatreme posted some promising results from drilling conducted at Galalar over June and July. The company said the results would be used to improve resource and reserve confidence to be included in a feasibility studies.

The company is reportedly advancing a definitive feasibility study for the silica sand project which is expected to be completed in the December quarter. Mining lease and final environmental approvals are targeted for quarter one of 2022 and first production is aimed for late next year.

DRX last traded at 2.6 cents on September 1.

DRX by the numbers
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