Dacian hopes to raise A$25m for Mt Morgans development
PERTH (miningweekly.com) – Gold hopeful Dacian Gold is hoping to raise A$25-million through an equity raising to fund the next stage of development of its Mt Morgans project, in Western Australia.
The ASX-listed junior on Monday said it would place 14.42-million shares to raise nearly A$10-million and would issue a further 21.84-million shares under a 5-for-22 accelerated nonrenounceable entitlement offer to raise a further A$15-million.
The shares would be issued at a price of 69c each, representing a 4.2% discount to the company’s last closing price and a 13.9% discount to its ten-day volume weighted average price.
“The equity raising follows the detailed scoping study announced at the end of September, showing that Mt Morgans is likely to become an outstanding gold project at every level, underpinned by strong production rates, low costs and likely robust margins and cash flow, particularly at the current Australian dollar gold price,” said executive chairperson Rohan Williams.
The proceeds from the offer would be used to fund a definitive feasibility study at the Mt Morgans project, which was scheduled for completion in the September quarter of 2016, and would include a targeted drilling programme to upgrade the inferred resource.
Funds would also be used towards exploration work at multiple drill-ready targets previously identified and to provide Dacian with working capital.
A September scoping study into the Mt Morgans project indicated that the project could produce some 220 000 oz/y over its first five-year mine life. Based on the development of a standalone 2.5-million-tonne-a-year plant servicing four openpit and three underground mines, the project would require a capital investment of A$157-million.
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