PERTH (miningweekly.com) – Junior gold miner Dacian Gold has raised A$40-million in an institutional share placement, to accelerate the exploration at its Mt Morgans operation, in Western Australia, and to extinguish a life-of-mine royalty obligation.
The ASX-listed miner earlier this week launched the placement, priced at A$2.70 a share, with the aim of raising A$37-million. However, the company said on Friday that the placement had been heavily oversubscribed, and had been supported by a number of new, existing and domestic and international institutional investors.
“I am delighted with the success of the institutional placement, which was very strongly supported by a high quality group of investors,” said Dacian executive chairperson and CEO Rohan Williams.
“The equity raising allows the company to fast-track the value-realisation of recent significant advances made on the exploration front at Mt Morgans by bringing forward discovery of new mineral resources and potentially new mines and higher production levels.
“In addition, the cancellation of the Jupiter life-of-mine royalty will allow the company to retain more of the cash generated by the Mt Morgans operation.”
A share purchase plan for eligible shareholders will open on July 16, and will raise up to a further A$5-million at the same price as the institutional placement.
Eligible shareholders will be able to subscribe for up to A$15 000 of new shares, with the raising capped at around 1.9-million shares.