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Diatreme Resources (ASX:DRX) to raise $4.6M for Galalar Project
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  • Silica sands developer Diatreme Resources (DRX) is aiming to raise nearly $5 million to progress its Galalar Silica Project in Queensland
  • The company will issue around 464 million shares at 1 cent each to new and existing sophisticated and institutional investors
  • Major investor, Ilwella, has subscribed for 37 per cent of the placement
  • Additionally, Diatreme will undertake a $500,000 share purchase plan to eligible shareholders
  • On market close for the week, Diatreme finished in the green, up 8.33 per cent and trading for 1.3 cents per share

Silica sands developer Diatreme Resources (DRX) is aiming to raise $4.64 million to progress its Galalar Silica Project in Queensland.

The company will issue around 464 million shares at 1 cent each to new and existing sophisticated and institutional investors.

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

Galalar is located 200 kilometres north of Cairns, in Northern Queensland.

On top of the placement, Diatreme will also undertake a $500,000 share purchase plan to eligible shareholders.

The funds will be used to advance Galalar, which includes resource drilling, permitting and development.

Diatreme’s Chairman, Greg Starr, is pleased with the continued support from Illwella and welcomes new investors to the company.

"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," Greg said.

Ilwella Chief Investment Officer, Quentin Flannery, sees high-grade silica sands as a huge opportunity for the future and "Galalar as one of the best mines to capitalise on this opportunity," he added.

"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.

"Given the immense pressure to decarbonise the economy and shift to renewables, we don’t see any signs of this growth slowing down any time soon," Greg said.

On market close for the week, Diatreme finished in the green, up 8.33 per cent and trading for 1.3 cents per share.

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