Total
0
Shares
Diatreme Resources (ASX:DRX) raises $4.6M to advance Silica Project
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Minerals and silica sands developer Diatreme Resources (DRX) has completed its placement which raised more than $4.6 million
  • The company issued over 463.8 million shares to sophisticated and institutional investors at one cent each
  • The placement received strong support from major investor, Ilwella, who subscribed for $1.65 million, or 37 per cent, of the placement
  • Funds raised will be put towards permitting and exploration activities at the Galalar Silica Project in Queensland
  • Diatreme ended the day 9.09 per cent in the green with shares closing at 1.2 cents

Diatreme Resources (DRX) has completed its placement which raised $4,638,628.

The company issued 463,862,800 fully paid ordinary shares to new and existing sophisticated and institutional investors at an issue price of one cent per share.

Pleasingly, major investor, Ilwella, subscribed for $1.65 million, or 37 per cent, of the placement.

Diatreme announced its plans to raise the funds at the end of last week and said the funds would be put towards advancing the Galalar Silica Project. Galalar is located 200 kilometres north of Cairns in northern Queensland.

The company has a mineral resource estimate of 47.5 million tonnes at 99 per cent silicon dioxide, including a maiden measured mineral resource comprising 30.9 million tonnes at 99.28 per cent silicon dioxide.

"We continue to advance the Galalar project at a rapid pace in this world‐class silica province and we look forward to delivering on our vision in the near term to become a producer of high‐quality premium grade silica and mineral sands for use in growing global solar PV and ceramics markets," Chairman Greg Starr said.

"The project, an important economic development for North Queensland, aims to become a material supplier to the solar energy industry which continues to grow at an extraordinary rate," Greg said.

Specifically, exploration will include resource drilling, permitting and development work.

Diatreme ended the day 9.09 per cent in the green with shares closing at 1.2 cents.

DRX by the numbers
More From The Market Herald

" Legacy Iron Ore (ASX:LCY) extends work at South Laverton Gold Projects

Legacy Iron Ore (LCY) has provided an update of exploration activities at its South Laverton Gold Projects in Western Australia.
Southern Gold (ASX:SAU) - Managing Director, Simon Mitchell - The Market Herald

" Southern Gold (ASX:SAU) begins drilling at Deokon

Southern Gold (SAU) has begun drilling at the Nettle Zone at the Deokon Gold-Silver Project in South Korea.
Kin Mining (ASX:KIN) - Managing Director, Andrew Munckton - The Market Herald

" Kin Mining (ASX:KIN) highlights regional exploration plans in WA

Kin Mining (KIN) has highlighted some drilling plans at a number of deposits located outside of its Cardinia Gold Project (CGP) in Western
Apollo Consolidated (ASX:AOP) - Managing Director, Nick Castleden (right) - The Market Herald

" Apollo Consolidated (ASX:AOP) intersects further gold at Cleo

Apollo Consolidated (AOP) has intersected further widespread gold mineralisation at the Cleo discovery.